Home / Questions / Suppose you have the following values for a short-run production processthat the average c...
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 = 10Q^{3} - 50Q^{2} + 1000Q + 500, what is the equation for ATC?
58.If the total cost function is TC = 10Q^{3} - 50Q^{2} + 1000Q + 500, what is the equation for MC?
59.If the total cost function is TC = 10Q^{3} - 50Q^{2} + 1000Q + 500, what is the equation for AFC?
60.If the total cost function is TC = 10Q^{3} - 50Q^{2} + 1000Q + 500, what is the equation for AVC?
Feb 11 2020 View more View Less
The Daily Planet has a wholly owned foreign subsidiary in Brazil. The subsidiary earns 30 million reals per year before taxes in Brazil. The foreign income tax rate is ...
Apr 30 2020A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on Jan...
Jun 16 2020When the allowance method is used to account for uncollectible accounts, bad debts expense is debits when : a) a sale is made b) an account becomes bad and is written o...
Aug 13 2021Which of the following is not one of the most common billing schemes?a. Setting up dummy companies to submit invoices to the victim organization.b. Changing the quantity ...
Aug 18 2021Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of ...
Jul 26 2021For problems 11.1 through 11.7 qualitatively sketch the deformed shape of the structures for the given loads.
Jul 07 2020Which of the following pairs of compounds have the same empirical formula?a. acetylene, and benzene, b. ethane, and butane, c. nitrogen dioxide, and dinitrogen tetr...
Jul 01 2021What is the pH at the equivalence point in the titration of 25.0 mL 0.10 M NH3 with 0.10 M HCl?
Jul 28 2021Show that if f (x) is a strictly convex quadratic, then the function f (x0 + σ0 p0 +··· + σk−1 pk−1) also is a strictly convex quadratic in the variable σ (σ0, σ1,...,σk−1T
Aug 06 2020A 200-L rigid tank contains propane at 9 MPa, 280°C. The propane is then allowed to cool to 50°C as heat is transferred with the surroundings. Determine the quality at th...
Jun 07 2020