SI-ECON 315- Chapter 5 Review

In Linear Production Function

• K and L are easily substituted for each other

• K and L cannot be substituted for each other

• K and L can't be substituted within limit

• K and L can be substituted within a limit

when a firm has decreasing returns to scale, the LRATC curve slopes down.

• True

• False

A firm has the following production function Q= 20K +17L. The firm's MPK is 20

• True

• False

Q= min{6K, 5L} is an example of COBB-Douglas

• True

• False

K and L can be substituted within Limits

• Linear Production

• Leontieff

• COBB-Douglas

In Leontieff function, the isoquant is what "shape"

• L

• E

• O

• C

Q=min{5K, 7L} if K= 3, L=2. Q?

• 12

• 13

• 14

• 10

Given Q= 5L^(0.7)K^(0.3), MPL= 3.5L^(-0.3)K^(0.3)

• True

• False

TC= 1000+6Q+3Q^2-0.1Q^3, find MC at Q =2

• 15.8

• 16.8

• 14.8

• 13.8

TFC curve is horizontal and doesn't change

• True

• False