L12-15

Question 1

Intertemporal choice

Answer 1

Question 2

Question 3

Answer 3

Question 4

Answer 4

Question 5

Answer 5

Question 6

Answer 6

Question 7

Answer 7

Question 8

Answer 8

Question 9

Labour Supply

Question 10

Answer 10

Question 11

Answer 11

Question 12

Question 13

Answer 13

Question 14

Answer 14

Question 15

Question 16

Answer 16

Question 17

Producer theory short run

Question 18

Short run

Answer 18

at least 1 factor of production fixed

Question 19

MPL

Answer 19

Question 20

APL

Answer 20

Question 21

Answer 21

Question 22

Answer 22

Question 23

Answer 23

Question 24

Long run producer theory

Question 25

Long run

Answer 25

all factors of production vary

Question 26

Isoquants

Answer 26

possible combinations of factors that generate a given level of output. Assumptions: firm uses factors efficiently and Marginal Product of both factors is positive

Question 27

Gradient of Isoquant

Answer 27

Marginal rate of technical substitution (MRTS). Describes negative change in the units of capital required to keep output constant following a unit increase in labour

Question 28

MRTS =

Answer 28

Question 29

Answer 29

Question 30

Isocost

Answer 30

Possible combinations of inputs that constitute a given total cost C

Question 31

Question 32

Answer 32

Question 33

Answer 33

Question 34