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Suppose you have the following values for a short-run production processthat the average cost curve must be increasing average

Suppose you have the following values for a short-run production process: Q = 20, VC = 100, FC = 600 and MC = 40. Given this, we know that the:  

A. average cost curve must be increasing

B. average cost curve must be decreasing

C. marginal cost curve must be increasing

D. marginal cost curve must be decreasing

52.Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labour. The price of labour is €10 per unit and the price of capital is €2 per unit.

If at the current level of production the marginal product of labour is 4 while the marginal product of capital is 2 then in order to minimize your costs of production you should use:  

A. more capital and less labour

B. more labour and less capital

C. more of both inputs

D. the same amount of both inputs

53.Output for a simple production process is given by Q = KL, where K denotes capital and L denotes labour. The price of labour is €10 per unit and the price of capital is €2 per unit.

Suppose at the current level of production the firm is minimizing costs and the marginal product of labour is 10. Given this you know that the marginal product of capital must be:  

A. 5

B. 2

C. 10

D. It is impossible to say with the information given

54.Suppose output for a simple production process is given by Q = K + L, where K denotes capital, and L denotes labour. The price of labour is €2 per unit and the price of capital is €4 per unit. What would be the minimum costs of producing 10 units of output?  

A. €40

B. €20

C. €10

D. It is impossible to say with the information given

55.The minimum efficient scale of production is the level of production required for the:  

A. long run average curve to reach its minimum

B. variable cost curve to reach its minimum

C. marginal cost curve to reach its minimum

D. average cost curve to reach its minimum

56.Average total cost is €100 for a given output, total fixed cost is €120 and average variable cost is €70. What is the quantity being produced?  

57.If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for ATC?  

58.If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for MC?  

59.If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AFC?  

60.If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AVC?  

Feb 11 2020 View more View Less

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