2.A widget manufacturer has an infinitely substitutable production function of the form Q = 2K + L, If Q = 20, Q = 40, and Q = 60. What is the RTS along these iso-quants?

A.RTS = 0

B.RTS = -0.5

C.RTS = 1

D.RTS = 0.5

3.Imagine that the production function for tuna cans is given by Q = 6K +4L where Q = output of tuna cans per hour, K = capital input per hour, L = labor input per hour. Assuming capital is fixed at K= 6, how much L is required to produce 60 tuna cans per hour? To produce 100 per hour?

A.Q = 30 , L = 3 ; Q = 50, L = 8

B.Q = 60 , L = 6 ; Q = 100, L = 16

C.Q = 90 , L = 9 ; Q = 150, L = 24

D.Q = 120 , L = 12 ; Q = 200, L = 32

4.Imagine that the production function for tuna cans is given by Q = 6K +4L where Q = output of tuna cans per hour, K = capital input per hour, L = labor input per hour. Assuming capital is fixed at K= 8, how much Lis required to produce 60 tuna cans per hour? To produce 100 per hour?

A.Q = 120 , L = 12 ; Q = 200, L = 32

B.Q = 30 , L = 3 ; Q = 50, L = 8

C.Q = 90 , L = 9 ; Q = 150, L = 24

D.Q = 60 , L = 3 ; Q = 100, L = 13

5.Frisbees are produced according to the production function Q = 2K + L, where, Q = output of frisbees per hour, K = capital input per hour, L = labor input per hour. If K = 10, how much L is needed to produce 100 Frisbess per hour?

A.Q = 60, L = 40

B.Q = 80, L = 60

C.Q = 40, L = 20

D.Q = 100, L = 80

6.The long-run total cost function for a firm producing skateboards is TC = Q^3 - 40Q^2 +430Q, where Q is the number of skateboards per week. Calculate the average cost function for skate-boards. What shape does the graph of this function have?

A.Q - 60Q + 412, parallel

B.Q^2 - 30Q + 350, parabola

C.Q^3 - 90 + 100, circle

D.Q - 120, line

_____7.The cost of a good as measured by the alternative uses that are forgone by producing the good.

_____8.The cost of hiring one worker for one hour.

_____9.Expenditure that once made cannot be recovered.

_____10.The cost of hiring one machine for one hour.

_____11.The difference between a firm's total revenues and its total economic costs.

_____12.Total cost divided by output; a common measure of cost per unit.

_____13.The additional cost of producing one more unit of output.

_____14.The period of time in which a firm must consider some inputs to be fixed in making its decisions.

_____15.The period of time in which a firm may consider all of its inputs to be variable in making its decisions.

_____16.Costs associated with inputs that are fixed in the short run.

_____17.Costs associated with inputs that can be varied in the short run.

_____18.The additional output that can be produced by adding one more unit of a particular input while holding all other inputs constant

_____19.A contour map of a firm's production function.

_____20.A curve that shows the various combinations of inputs that will produce the same amount of output

Notes: Microeconomics