Question 1

Given the production function $$Q = LK$$ and a fixed capital input $$K = 5$$, what is the output when the firm hires $$L = 3$$ laborers?

Accepted Answer

$$Q = 15$$

Question 2

For the production function $$Q = LK$$ with $$K = 5$$, what is the Marginal Product of Labor (MPL) when increasing labor from $$L = 2 to$$ $$L = 3$$?

Accepted Answer

$$MPL = 5$$

Question 3

Suppose a firm has the production function $$Q = 2KL. If $$the firm uses $$K = 2$$ units of capital and $$L = 4$$ units of labor, what is the output?

Accepted Answer

$$Q = 16$$

Question 4

Using the production function $$Q = 2KL$$, what type of returns to scale does this function exhibit?

Accepted Answer

Constant returns to scale

Question 5

If a firm with production function $$Q = LK$$ doubles both labor and capital inputs, what happens to output?

Accepted Answer

Output increases by a factor of four

Question 6

For the production function $$Q = LK$$, what is the Average Product of Labor (APL) when $$L = 4$$ and $$K = 5$$?

Accepted Answer

$$APL = 5$$

Question 7

A firm is in the short-run with fixed capital $$K = 5. If it $$hires $$L = 5$$ laborers, what is the output using $$Q = LK$$?

Accepted Answer

$$Q = 25$$

Question 8

Suppose a firm has the production function $$Q = 2KL. If $$both $$K$$ and $$L$$ are tripled, by what factor does output change?

Accepted Answer

Output increases by a factor of 9

Question 9

Which of the following best describes an isoquant curve for $$Q = 2KL$$?

Accepted Answer

A curve showing all combinations of $$K$$ and $$L$$ that produce the same output

Question 10

If a firm with $$Q = LK$$ increases labor from $$L = 2 to$$ $$L = 3$$ while keeping $$K = 5$$ fixed, what is the change in output?

Accepted Answer

Output increases by 5 units

Question 11

For the production function $$Q = 2KL$$, what is the output when $$K = 3$$ and $$L = 3$$?

Accepted Answer

$$Q = 18$$

Question 12

If a firm with $$Q = LK$$ hires no labor ($$L = 0$$), what is the output regardless of the capital input?

Accepted Answer

$$Q = 0$$

Question 13

Suppose a firm with $$Q = 2KL$$ wants to produce $$Q = 24. If$$ $$K = 4$$, how many units of labor $$L$$ are required?

Accepted Answer

$$L = 3$$

Question 14

Which of the following statements about returns to scale is correct for the production function $$Q = LK$$?

Accepted Answer

It exhibits increasing returns to scale

Question 15

For the production function $$Q = 2KL$$, what is the output if $$K = 5$$ and $$L = 2$$?

Accepted Answer

$$Q = 20$$

Question 16

If a firm with $$Q = LK$$ increases labor from $$L = 4 to$$ $$L = 5$$ with $$K = 5$$, what is the Marginal Product of Labor (MPL)?

Accepted Answer

$$MPL = 5$$

Question 17

Suppose a firm with $$Q = 2KL$$ uses $$K = 6$$ and $$L = 1. $$What is the output?

Accepted Answer

$$Q = 12$$

Question 18

If a firm with $$Q = LK$$ hires $$L = 2$$ laborers and uses $$K = 5$$ units of capital, what is the Average Product of Labor (APL)?

Accepted Answer

$$APL = 10$$

Question 19

For the production function $$Q = 2KL$$, what is the output if both $$K$$ and $$L$$ are equal to 4?

Accepted Answer

$$Q = 32$$

Question 20

If a firm with $$Q = LK$$ increases both $$L$$ and $$K$$ from 2 to 4, what happens to output?

Accepted Answer

Output increases by a factor of 4

Microeconomics Study Guide: Production Functions, Marginal & Average Product, Returns to Scale

Study Guide - Practice Questions