PLEASE ANSWER ALL QUESTION BELOW: Topic - Production Economic 1. The marginal rate of technical substitution may be defi

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PLEASE ANSWER ALL QUESTION BELOW:
Topic - ProductionEconomic
1. The marginal rate of technical substitution may bedefined as all of the following except:
a. the rate at which one input may be substituted for anotherinput in the production process, while total output remainsconstant
b. equal to the negative slope of the isoquant at any point onthe isoquant
c. the rate at which all combinations of inputs have equal totalcosts
d. equal to the ratio of the marginal products of X and Y
e. b and c
2. The law of diminishing marginal returns:
a. states that each and every increase in the amount ofthe variable factor employed in the production process will yielddiminishing marginal returns
b. is a mathematical theorem that can be logically proved ordisprove
c. is the rate at which one input may be substituted for anotherinput in the production process
d. none of the above
3. The combinations of inputs costing a constant Cdollar is called:
a. is cost line
b. isoquant curve
c. MRTS
d. is revenue line
e. none of the above
4. The marginal product is defined as:
a. the ratio of total output to the amount of the variable inputused in producing the output.
b. the incremental change in total output that can be producedby the use of one more unit of the variable input in the productionprocess
c. the percentage change in output resulting from a givenpercentage change in the amount of the variable input X employed inthe production process with Y
d. a and b
e. none of the above
5. In a relationship among total, average and marginalproducts, where TP is maximized:
a. AP is maximized
b. AP is equal to zero
c. MP is maximized
d. MP is equal to zero
e. none of the above
6. The rate at which one input X may be substituted foranother input Y in a production process, while total output remainsconstant, is:
a. the slope of the isoquant curve
b. the marginal rate of technical substitution (MRTS)
c. equal to MPx/MPy
d. all of the above
e. none of the above
7. Which of the following is nevernegative?
a. marginal product
b. average product
c. production elasticity
d. marginal rate of technical substitution
e. slope of the is cost lines
8. Concerning the maximization of output subject to acost constraint, which of the following statements (if any) aretrue?
a. At the optimal input combination, the slope of theisoquant must equal the slope of the is cost line.
b. The optimal solution occurs at the boundary of thefeasible region of input combinations
c. The optimal solution occurs at the point where the isoquantis tangent to the is cost lines.
d. all of the above
e. none of the above
9. In a production process, an excessive amount of thevariable input relative to the fixed input is being used to producethe desired output. This statement is true for:
a. stage II
b. stages I and II
c. when Ep = 1
d. stage III
e. none of the above
10. Marginal revenue product is:
a. defined as the amount that an additional unit of the variableinput adds to the total revenue
b. equal to the marginal factor cost of the variable factortimes the marginal revenue resulting from the increase in outputobtained
c. equal to the marginal product of the variable factor timesthe marginal product resulting from the increase in outputobtained
d. a and b
e. a and c
11. The isoquants for inputs that are perfectsubstitutes for one another consist of a series of:
a. right angles
b. parallel lines
c. concentric circles
d. right triangles
e. none of the above
12. In production and cost analysis, the short run isthe period of time in which one (or more) of the resources employedin the production process is fixed or incapable of beingvaried.
a. true
b. false
13. Marginal revenue product is defined as the amountthat an additional unit of the variable input adds to____________.
a. marginal revenue
b. total output
c. total revenue
d. marginal product
e. none of the above
14. Marginal factor cost is defined as the amount thatan additional unit of the variable input adds to________________.
a. marginal cost
b. variable cost
c. marginal rate of technical substitution
d. total cost
e. none of the above
15. The isoquants for inputs that are perfectcomplements for one another consist of a series of:
a. right angles
b. parallel lines
c. concentric circles
d. right triangles
e. none of the above