Podcast
Questions and Answers
What does the production function, q = (K,L), show the relationship between?
What does the production function, q = (K,L), show the relationship between?
- Output and inputs (correct)
- Inputs and prices
- Inputs and technology
- Output and technology
What is marginal product?
What is marginal product?
- The rate at which one input can be substituted for another
- The maximum amount of output a firm can produce
- The ratio of labor to capital in the production process
- The additional output produced by adding one more unit of input, holding other inputs constant (correct)
What does an isoquant show?
What does an isoquant show?
- Possible input combinations that a firm can use to produce a given level of output (correct)
- The relationship between input prices and output levels
- The impact of taxes on production
- The technology used in production
What does the absolute value of the isoquant's slope represent?
What does the absolute value of the isoquant's slope represent?
How does the rate of technical substitution (RTS) change as a firm uses more and more of one input?
How does the rate of technical substitution (RTS) change as a firm uses more and more of one input?
With technological progress, what happens to the isoquant?
With technological progress, what happens to the isoquant?
What does the term 'marginal product' refer to?
What does the term 'marginal product' refer to?
In a production function, what does q = f( K, L ) represent?
In a production function, what does q = f( K, L ) represent?
What determines the slope of an isoquant?
What determines the slope of an isoquant?
How does a firm increase output according to the text?
How does a firm increase output according to the text?
What happens to production as a result of technological change?
What happens to production as a result of technological change?
What term describes the ability of a firm to substitute one input for another?
What term describes the ability of a firm to substitute one input for another?
What is a shift in the production function that allows a given output level to be produced using fewer inputs?
What is a shift in the production function that allows a given output level to be produced using fewer inputs?
In economic terms, what does RTS typically stand for?
In economic terms, what does RTS typically stand for?
In a production function, what does 'q = 10 x (KL) ½' represent?
In a production function, what does 'q = 10 x (KL) ½' represent?
How can you define isoquant in the context of production?
How can you define isoquant in the context of production?
What is the economic concept that describes the additional output gained by employing one more unit of input?
What is the economic concept that describes the additional output gained by employing one more unit of input?
Which term refers to the relationship between changes in all inputs and the resulting proportional change in output?
Which term refers to the relationship between changes in all inputs and the resulting proportional change in output?
Flashcards are hidden until you start studying
