[2017年整理]微观经济学作业答案3.doc

Managerial Economics HOMEWORK SET#3 Name: Class: Student #: (Due day: Next class) Part 1: 1. When the average product is decreasing, marginal product a. equals average product. b. is increasing. c. exceeds average product. d. is decreasing. e. is less than average product. Choose: e) The next two questions refer to a firm in a constant- cost industry with ATC(q) = 2,000/q + 100 + 5q and MC(q) = 100 + 10q. 2. The long-run equilibrium price equals: a. $100 b. $200 c. $300 d. $500 e. None of the above is correct. Choose: c) Find minimum ATC by setting ATC = MC; this yields q = 20. Plug q = 20 into ATC to find the long-run equilibrium price of $300. 3. Demand for industry output has just increased. If the market price initially rises to $600, each firm in the long run will produce: a. 20 units b. 50 units. c. 88.7 unit d. 100 units. e. More information is needed. Choose: a) The long-run equilibrium will again have each firm producing at minimum ATC. Each firm produces 20 units, as in Question 3. 4. A straight-line isoquant a. is impossible. b. would indicate that the firm could switch from one output to another costlessly. c. would indicate that the firm could not switch from one output to another. d. would indicate that capital and labor cannot be substituted for each other in production. e. would indicate that capital and labor are perfect substitutes in production. Choose: e) 5. A farmer uses M units of machinery and L hours of labor to produce C tons of corn, with the following production function C = L0.5 + M0.75. This production function exhibits a. decreasing returns to scale for all output levels b. constant returns to scale for all output levels c. increasing returns to scale for all output levels d. no clear pattern of returns to scale Choose: b) 2L0.5+2M0.75=2C 6. The difference between the economic and accounting costs of a firm are a. the accounta