Sample Questions: Part 4 1. The marginal cost curve of a firm is MC = 6y. Total variable costs to produce 10 units of output are a. $120. b. $300. c. $80. d. $400. e. $26. 2. A firm has a cost function c(y) = 3y + 11 for y > 0 and c(0) = 8. The firm’s quasi-fixed costs are a. $8. b. $11. c. $3. d. $7. e. They are not possible to determine from this information. 3. A firm has the production function Q = X1/21X2. In the short run it must use exactly 15 units of factor 2. The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit. The firm’s short-run marginal cost function is a. MC(Q) = 10Q/15. b. MC(Q) = 30Q-1/2. c. MC(Q) = 30 + 75Q2. d. MC(Q) = 2Q. e. MC(Q) = 15Q-1/2. 4. The UJava espresso stand needs two inputs, labor and coffee beans, to produce its only output, espresso. Producing an espresso always requires the same amount of coffee beans and the same amount of time. Which of the following production functions would appropriately describe the production process at UJava, where B represents ounces of coffee beans, and L represents hours of labor? a. Q = 0.5B + 0.5L0.5. b. Q = B0.80L0.20. c. Q = min(2B, 60L). d. Q = B/2 + L/30. e. None of the above. 5. A firm has a production function f(x, y) = 1.40(x0.60 + y0.60)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has a. increasing returns to scale. b. decreasing returns to scale.
Sample Questions: Part 4 1. The marginal cost curve of a firm is MC = 6y. Total variable costs to produce 10 units of output are a. $120. b. $300. c. $80. d. $400. e. $26. 2. A firm has a cost function c(y) = 3y + 11 for y > 0 and c(0) = 8. The firm’s quasi-fixed costs are a. $8. b. $11. c. $3. d. $7. e. They are not possible to determine from this information. 3. A firm has the production function Q = X1/21X2. In the short run it must use exactly 15 units of factor 2. The price of factor 1 is $75 per unit and the price of factor 2 is $2 per unit. The firm’s short-run marginal cost function is a. MC(Q) = 10Q/15. b. MC(Q) = 30Q-1/2. c. MC(Q) = 30 + 75Q2. d. MC(Q) = 2Q. e. MC(Q) = 15Q-1/2. 4. The UJava espresso stand needs two inputs, labor and coffee beans, to produce its only output, espresso. Producing an espresso always requires the same amount of coffee beans and the same amount of time. Which of the following production functions would appropriately describe the production process at UJava, where B represents ounces of coffee beans, and L represents hours of labor? a. Q = 0.5B + 0.5L0.5. b. Q = B0.80L0.20. c. Q = min(2B, 60L). d. Q = B/2 + L/30. e. None of the above. 5. A firm has a production function f(x, y) = 1.40(x0.60 + y0.60)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has a. increasing returns to scale. b. decreasing returns to scale.
ikt213_orneksorular_5-yaz2013.docx