TEST BANK FOR Chapter 6 Production LATEST 2021/2022

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1) A production function defines the output that can be produced A) at the lowest cost, given the inputs available. B) for the average firm. C) if the firm is technically efficient. D) in a given ... time period if no additional inputs are hired. E) as technology changes over time. Answer: C Diff: 2 Section: 6.1 2) A production function assumes a given A) technology. B) set of input prices. C) ratio of input prices. D) amount of capital and labor. E) amount of output. Answer: A Diff: 1 Section: 6.1 3) A function that indicates the maximum output per unit of time that a firm can produce, for every combination of inputs with a given technology, is called A) an isoquant. B) a production possibility curve. C) a production function. D) an isocost function. Answer: C Diff: 1 Section: 6.1 4) Use the following two statements to answer this question: I. Production functions describe what is technically feasible when the firm operates efficiently. II. The production function shows the least cost method of producing a given level of output [Show More]

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