Microeconomics, 17th Canadian Edition, By Christopher Ragan

Solution Manual For Microeconomics, 17th Canadian Edition,
By Christopher Ragan
A production function assumes a given:
A) technology.
B) set of input prices.
C) ratio of input prices.
D) amount of capital and labor. - ANSWER: Technology
A production function assumes a given technology.

A function that indicates the maximum output per unit of time a firm can produce,
for every combination of inputs with a given technology, is called
A) an isoquant
B) a production possibility curve
C) a production function
D) an isocost function - ANSWER: A production function

Use the following two statements to answer the question:
I. Production functions describe what is technically feasible when the firm operates
efficiently.
II. The production function shows the least cost method of producing a given level of
output.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false. - ANSWER: I is true, and II is false

Production functions describe what is technically feasible when the firm operates
efficiently. True

The production function shows the least cost method of producing a given level of
output. False

Which of the following inputs are variable in the long run?
A) labor
B) capital and equipment
C) plant size
D) all of these - ANSWER: All of these

Labor, Capital and Equipment, Plant Size are all variable in the long run

The short run is
A) less than a year.
B) three years.
C) however long it takes to produce the planned output.

, D) a time period in which at least one input is fixed.
E) a time period in which at least one set of outputs has been decided upon. -
ANSWER: a time period in which at least one input is fixed.

The short run is a time period in which at least one input is fixed

Writing total output as Q, change in output as delta Q, total labor as L, and change in
labor as delta L, the marginal product of labor can be written algebraically as
A) DeltaQ* L.
B) Q/L
C) Delta L/Delta Q
D) Delta Q/ Delta L - ANSWER: Delta Q/Delta L

The slope of the total product curve is the
A) average product.
B) slope of a line from the origin to the point.
C) marginal product.
D) marginal rate of technical substitution - ANSWER: marginal product.

The slope of the total product curve is the marginal product.

When labor usage is at 12 units, output is 36 units. From this we may infer that
A) the marginal product of labor is 3.
B) the total product of labor is 1/3.
C) the average product of labor is 3.
D) none of the above - ANSWER: The average product of labor is 3.

The marginal product of an input is
A) total product divided by the amount of input used to produce this amount of
output.
B) the addition to total output that adds nothing to total revenue.
C) the addition to total output that adds nothing to profit.
D) the addition to total output due to the addition of one unit of all other inputs.
E) the addition to total output due to the addition of the last unit of an input, holding
all other inputs constant. - ANSWER: the addition to total output due to the addition
of the last input, holding all other inputs constant.

The marginal product of an input is the addition to total output due to the addition
of the last unit of an input, holding all other inputs constant.

When the average product is decreasing, marginal product
A) equals the average product.
B) is increasing
C) exceeds average product
D) is decreasing.
E) is less than the average product - ANSWER: is less than the average product