The production function for good X in the table below exhibits increasing 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: B
You might also like to view...
The demand for money curve slopes downward because a rise in the nominal interest rate ________ the opportunity cost of holding money and therefore ________ the quantity of money demanded
A) decreases; decreases B) increases; decreases C) decreases; increases D) increases; does not change E) increases; increases
Which of the following models results in the highest level of output assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Cartel
When the Fed sells U.S. government securities to a member bank, the immediate effect on that bank's balance sheet is a(n): a. decrease in assets and an increase in liabilities
b. increase in assets and a decrease in liabilities. c. increase in both assets and liabilities. d. decrease in both assets and liabilities. e. change in the type of assets the bank is holding, but no change in liabilities.
In long-run perfectly competitive equilibrium, marginal cost
A. Is less than ATC. B. Equals the minimum of the AVC. C. Equals the minimum of the ATC. D. Is greater than ATC.