Quiz III

What would be the main aim of the Production/Operation management function be

• Creating value

• satisfy customer needs

• acquiring goods and services required by other business functions

Which of the following form part of the Internal supply chain of the business?

• Purchasing function

• Marketing function

• Micro environment

• Public relations function

Which of the following is NOT a factor of production?

• Technology

• Information technology

• land

• Interest

A production function assumes a given:

• technology.

• set of input prices.

• ratio of input prices.

• amount of capital and labor.

• amount of output.

A farmer uses L units of labor and K units of capital to produce Q units of corn using a production function F(K,L). A production plan that uses K'=L'=10 to produce Q' units of corn where Q'<F(10,10) is said to be:

• technically feasible and efficient.

• technically unfeasible and efficient.

• technically feasible and inefficient.

• technically unfeasible and inefficient.

• none of the above

Which of the following inputs are variable in the long run?

• Labour

• Capital and equipment

• Plant size

• all of above

Joe owns a small coffee shop, and his production function is q = 3KL where q is total output in cups per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). If Joe's capital is currently fixed at K=3 machines, what is his short-run production function?

• q = 3L

• q = 3L²

• q = 9L

• q = 3K²

• both c and d

For many firms, capital is the production input that is typically fixed in the short run. Which of the following firms would face the longest time required to adjust its capital inputs?

• Firm that makes DVD players

• Computer chip fabricator

• Nuclear power plant

• all of above

We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor). If we use K = 10 robots and L = 10 workers in order to produce q = 450 autos per shift, then we know that production is:

• technologically efficient.

• optimal

• technologically inefficient.

• maximized.

• non of the above

Which of the following equations based on capital (K) and labor (L) inputs does not represent a plausible production function?

• F(K,L) = 3KL

• F(K,L) = 3K

• F(K,L) = K + L - 1

• F(K,L) = 10(KL)0.5

• both b and c