A consumer will be on a _________________ indifference curve with a conditional grant than with an unconditional grant. A. higher B. lower C. the same D. none of the above

The production function for a firm is given by TP = 4K²L². The price of capital is $4 and the price of labour is $2. The budget is $100.

The optimal amount of capital is:

• A. 25
• B. 12.5
• C. 8
• D. 4

The production function for a firm is given by TP = 4K²L². The price of capital is $4 and the price of labour is $2. The budget is $100.

The optimal amount of capital is:

• A. 25
• B. 12.5
• C. 8
• D. 4

The production function for a firm is given by TP = 4K²L². The price of capital is $4 and the price of labour is $2. The budget is $100. The optimal amount of labour is:

• A. 4
• B. 8
• C. 12.5
• D. 25

The production function for a firm is given by TP = 4K²L². The price of capital is $4 and the price of labour is $2. The budget is $100. The maximum output is:

• A. 100015
• B. 230925
• C. 340925
• D. 390625

Production managers for a manufacturing firm estimate their production function to be:

TP = 24L +10.5L²- L³

where TP is the output and L is labour. The price of a unit on output is $20.

At what level of input do diminishing returns occur?

• A. L=5.25
• B. L=3.5
• C. L=8
• D. L=1

Production managers for a manufacturing firm estimate their production function to be: TP = 24L +10.5L2 - L3 where TP is the output and L is labour. The price of a unit on output is $20. At what level of input does average product peak?

• A. L=3.5
• B. L=5.25
• C. L=8
• D. L=1

Production managers for a manufacturing firm estimate their production function to be: TP = 24L +10.5L2 - L3 where TP is the output and L is labour. The price of a unit on output is $20. What is the maximum output that can be produced?

• A. L=3.5
• B. L=5.25
• C. L=1
• D. L=8

Production managers for a manufacturing firm estimate their production function to be: TP = 24L +10.5L2 - L3 where TP is the output and L is labour. The price of a unit on output is $20. What is the maximum is dollars that you would pay for 5 labour?

• A. $100
• B. $1030
• C. $5150
• D. $1080

Economies of scale can be due to:

• A. volume purchasing
• B. higher borrowing rates
• C. higher wage rates
• D. all of the above

Diseconomies of scale can be due to:

• A. Division of labour
• B. Labour saving technology
• C. Cheaper borrowing rates
• D. More regulation

Short run full capacity occurs at:

• A. The maximum of the SRAC curve
• B. The maximum of the LRAC curve
• C. The minimum of the SRAC curve
• D. None of the above

When the SRAC curve is increasing there is:

• A. Excess K/L
• B. Excess L/K
• C. Both of the above
• D. None of the above