University of Louisiana, Lafayette - ECON 528 Module 4 Homework Assignment

University of Louisiana, Lafayette - ECON 528 Module 4 Homework Assignment Started on Monday, 17 September 2018, 10:14 PM State Finished Completed on Monday, 17 September 2018, 10:21 PM Time taken 6 mins 53 secs Marks 15.00/20 .00 Grade 7.50 out of 10.00 (75%) Question 1 Correct Mark 1.00 out of 1.00 Economies of scale exist as a firm increases its size in the long run because of all of the following except Select one: a. as a firm expands its production, its profit margin per-unit of output increases. b. the firm can afford more sophisticated technology in production. c. labor and management can specialize even further in their tasks. d. as a larger input buyer, the firm can purchase inputs at a lower per unit cost. Your answer is correct. The correct answer is: as a firm expands its production, its profit margin per-unit of output increases. ECON528-850-ECON528-010- Question 2 Correct Mark 1.00 out of 1.00 Over the past twenty years, the number of small family farms has fallen significantly and in their place there are fewer, but larger, farms owned by corporations. Which of the following best explains this trend? Select one: a. diminishing returns to labor in farming b. economies of scale in farming c. diseconomies of scale in farming Your answer is correct. The correct answer is: economies of scale in farming Question 3 Correct Mark 1.00 out of 1.00 The president of Toyota's Georgetown plant was quoted as saying, "Demand for high volumes saps your energy. Over a period of time, it eroded our focus [and] thinned out the expertise and knowledge we painstakingly built up over the years." This quote suggests that Select one: a. high demand for Toyota's cars prevented the company from focusing on its strength: auto design. b. Toyota was focused on "churning" out cars for which it did not invest sufficiently in training its workers. c. Toyota was experiencing an excess demand for its automobiles which it had difficulty keeping up with. d. as Toyota expanded its capacity, it experienced diseconomies of scale. Your answer is correct. The correct answer is: as Toyota expanded its capacity, it experienced diseconomies of scale. Question 4 Correct Mark 1.00 out of 1.00 If the marginal product of capital is six times as large as the marginal product of labor and the price of capital is three times as large as the price of labor, for costs to be minimized: Select one: a. more labor should be used and less capital. b. more labor should be used but the use of capital should remain constant. c. more capital should be used and less labor. d. the price of capital must fall. Your answer is correct. The correct answer is: more capital should be used and less labor. Question 5 Correct Mark 1.00 out of 1.00 The marginal revenue product of labor for a firm Select one: a. will decrease if the firm hires more labor. b. All of the above are correct. c. will increase if the price of the firm's output increases. d. is the firm's demand curve for labor. Your answer is correct. The correct answer is: All of the above are correct. Question 6 Correct Mark 1.00 out of 1.00 Would you expect economies of scope to occur in the following situation; Producing two goods that use the same resource Select one: a. No b. I cannot answer based on the available information c. Yes d. I do not know. Your answer is correct. The correct answer is: Yes Question 7 Incorrect Mark 0.00 out of 1.00 Would you expect economies of scope to occur in the following situation; Producing two goods that are complementary to each for the buyer such as coffee and sugar. Select one: a. Yes b. Cannot be determined based on the provided information c. No d. I do not know