Page 1 of 9
G300 QUESTIONS WITH VERIFIED ANSWERS ALREADY
GRADED A+
Suppose the marginal product of labor is 8 and the marginal
product of capital is 2. If the wage rate is $4 and the price of
capital is $2, then in order to minimize costs the firm should use:
......ANSWER........B. more labor and less capital.
For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost
of producing 2 units of output is: ......ANSWER........D. 14.
For a cost function C = 100 + 10Q + Q2, the average variable
cost of producing 20 units of output is: ......ANSWER........C. 30.
The production function for a competitive firm is Q = K.5L.5. The
firm sells its output at a price of $10, and can hire labor at a
wage of $5. Capital is fixed at one unit and costs $2. The
maximum profits are: ......ANSWER........A. 3.
The production function is Q = K.6 L.4. The marginal rate of
technical substitution is: ......ANSWER........C. 2/3 K L-1.
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The elasticity which shows the responsiveness of the demand for
a good due to changes in the price of a the good is the
......ANSWER........d. cross-price elasticity
For a steel factory, a decrease in the cost of electricity to the
plant will cause the supply curve to: ......ANSWER........c. shift to
the right
Which of the following statements is incorrect?
......ANSWER........d. all of the above are incorrect
Suppose market demand and supply are given by Qd = 100 -
2P and QS = 5 + 3P. If price is set as 30, what is the market
condition? ......ANSWER........There is excess supply
Suppose that supply increases and demand decreases. What
effect will this have on price and quantity? ......ANSWER.........
None of the statements associated with this question are correct
When dealing with present value, a higher interest rate
......ANSWER........decreases the present value of a future amount.
G300 QUESTIONS WITH VERIFIED ANSWERS ALREADY
GRADED A+
Suppose the marginal product of labor is 8 and the marginal
product of capital is 2. If the wage rate is $4 and the price of
capital is $2, then in order to minimize costs the firm should use:
......ANSWER........B. more labor and less capital.
For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost
of producing 2 units of output is: ......ANSWER........D. 14.
For a cost function C = 100 + 10Q + Q2, the average variable
cost of producing 20 units of output is: ......ANSWER........C. 30.
The production function for a competitive firm is Q = K.5L.5. The
firm sells its output at a price of $10, and can hire labor at a
wage of $5. Capital is fixed at one unit and costs $2. The
maximum profits are: ......ANSWER........A. 3.
The production function is Q = K.6 L.4. The marginal rate of
technical substitution is: ......ANSWER........C. 2/3 K L-1.
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The elasticity which shows the responsiveness of the demand for
a good due to changes in the price of a the good is the
......ANSWER........d. cross-price elasticity
For a steel factory, a decrease in the cost of electricity to the
plant will cause the supply curve to: ......ANSWER........c. shift to
the right
Which of the following statements is incorrect?
......ANSWER........d. all of the above are incorrect
Suppose market demand and supply are given by Qd = 100 -
2P and QS = 5 + 3P. If price is set as 30, what is the market
condition? ......ANSWER........There is excess supply
Suppose that supply increases and demand decreases. What
effect will this have on price and quantity? ......ANSWER.........
None of the statements associated with this question are correct
When dealing with present value, a higher interest rate
......ANSWER........decreases the present value of a future amount.
