QUESTION 12 Which of the following production functions exhibits a constant elasticity of substitution? O a. q = 3k + 21 Ob. g = 10.310.7 Ocg = Ink + In 12 O d. All of the above have a constant elasticity of substitution. QUESTION 13 If a price-taking firm's production function is given by 9 = v27, its supply function is given by: O a.q = p/2w. Ob.q = p/w. O C. q = 2pw. O d. q = 2w/p. QUESTION 14 If a firm wished to maximize total revenues, it should produce where: O a. marginal cost is zero. O b. marginal revenue is zero. O C. marginal revenue is equal to price. O d. marginal revenue is equal to marginal cost.Consider the production function If a = 0.7 and B = 1.5, then it must be the case that this production function has O a diminishing marginal productivity and decreasing returns to scale O b. diminishing marginal productivityes and constant returns to scale O C. increasing marginal productivity and increasing returns to scale O d. diminishing marginal productivityand increasing returns to scale QUESTION 5 The production function q = 41-270-5 exhibits: a. increasing returns to scale and diminishing marginal products for both k and 1. O b. decreasing returns to scale. O C. increasing returns to scale but no diminishing marginal productivityes. O d. increasing returns to scale and diminishing marginal product for / only. QUESTION 6 Suppose the production function for good q is given by = 3* + 2/ where k and I are capital and labor inputs. Consider three statements about function: I. the function exhibits constant returns to scale. II. the function exhibits diminishing marginal productivity to all inputs. III. the function has a constant rate of technical substitution. Which of these statements is true?QUESTION 1 The marginal rate of technical substitution {RTS) of labor for capital measures: 0 a. the ratio of total capital to total labor. O b. the ratio of total labor to total capital. 0 C. the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used. 0 CI. the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used. QUESTION 2 The marginal physical productivity of labor is defmed as: O a. the extra output produced by employing one more unit of labor while allowing other inputs to vary. 0 b. a rm's total output divided by total labor input. 0 C. the extra output produced by employing one more unit of capital while holding labor inth constant. C) d. the extra output produced by employing one more unit of labor while holding other inputs constant. QUESTION 3 The production function q = \\'IkI : O 3 exhibits diminishing returns to scale and diminishing marginal productivities for It and I. O b. exhibits constant returns to scale and diminishing marginal productis-ities for k and I. O 5- exhibits diminishing returns to scale and constant marginal productis-ities for k and I. 0 CI. exhibits constant returns to scale and constant marginal productivities for It and I. QUESTION 7 If the demand faced by a firm is elastic, selling one more unit of output will: O a. decrease revenues. O b. increase revenues. O C. keep revenues constant. O d. increase profits. QUESTION 8 A firm's isoquant shows: O a. the amount of labor needed to produce a given level of output with capital held constant. b. the amount of capital needed to produce a given level of output with labor held constant. O C. the various combinations of capital and labor that will produce a given amount of output. O d. none of the above. QUESTION 9 If demand facing the firm is price-elastic, marginal revenue will be: O a. constant. O b. negative. O C. zero. O d. positive.QUESTION 10 If a price-taking rm's production function is given by q = 1} 23 , its prot function is given by: a. O p2 QUESTION 11 A rm will hire additional units of an'j.r input up to the point where: O a. the revenue brought in by the input is maximized. O b. the expense of employmg the last unit is equal to the revenue brought in by the last unit. 0 C. the marginal productisdty of the input is maximized. O {l the marginal cost of employing the input is minimized