The production function in the table below exhibits negative marginal returns to capital over what output range? Production Function for Good XL*KQMPK=(?Q/?K)APK=(Q/K)LaborCapitalOutputMarginal Product of CapitalAverage Product of Capital900----910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54
A. Between 3,016 and 2,945
B. Between 0 and 1,524
C. Between 2,391 and 3,048
D. Between 0 and 2,991
Answer: A
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The market price in a perfectly competitive industry is $13 . A firm is considering increasing its output from 30 units to 40 units. The marginal revenue of each of these extra units equals
a. $13 b. $130 c. $390 d. $520 e. $130
If business inventories decrease below desired levels, then it is most likely that a
A. Higher price level will occur. B. Lower level of output will occur. C. Recessionary gap will occur. D. Higher level of unemployment will result.
Consider the following characteristics:
a. a market structure with barriers to entry b. demand curves that are easily identified c. firm cannot make zero profits in the long run d. firm can reap long-run profits. Which of the characteristics in the list above is shared by an oligopolist and a monopolist? A) a, b, c, and d B) a, b, and d C) a, c, and d D) a and d
A problem with using the price of a product similar to the intermediate good sold on the market is
a. the market price includes a margin above marginal cost b. the product on the market may include costly features your downstream division does not use c. the product on the market may be cheap because it is not as high of quality as your downstream division uses d. all of the above