When a production function can be expressed as Q = min{aK, bL}, the relationship between capital and labor in the production function is that

L Q 0 0 1 20 2 50 3 90 4 125 5 140 6 150 Average productivity is maximized with the ____________ worker.  

When average cost is “u-shaped” (neither always rising or always falling), the marginal cost curve will

Suppose that a firm has a Cobb-Douglas production function for its inputs of capital and labor.  The firm is currently paying $10 per labor hour and $5 per machine hour.  The firm is currently at an efficient production level, employing an equal number of machines and workers.  Suppose the cost of labor were to double and the cost of capital were to fall by half.  If the firm wanted to produce the previous level of output for the previous cost, the firm would hire

The type of elasticity of demand that is most commonly positively valued but that can be negative at times is called

Let U(x,y) = with MUx =  and MUy =  .  Let I = $100, Px = $25 and Py = $10 be the initial set of prices and income.  Now, let Px fall to $10.  What is the approximate compensating variation for this change in prices?

Suppose the production function can be expressed as .  Which of the following combinations of capital and labor (K, L) lie on the same isoquant?

Use the following diagram depicting a dominant firm market to answer the question.  DM represents market demand, SF represents the fringe supply curve, DR represents the dominant firm’s residual demand curve, MRM represents the dominant firm’s marginal revenue curve, and MC represents the dominant firm’s marginal cost curve. In equilibrium, what will the market price be?

A firm’s production function is given by Q = KL.  The marginal products of labor and capital are, respectively, MPL = K and MPK = L.  The wage rate of labor is w = $10 and the rental rate of capital is r = $20. The firm spends exactly $1000 in the most efficient way possible.  How much output can the firm produce?

In equilibrium, what will consumer surplus be?