Production Functions a and B Result in the Same Average

question 42

Multiple Choice

Production functions A and B result in the same average total costs of production.However,production function A is twice as capital intensive as production function B.In this case,all else constant:

• A)marginal costs will be higher in A than they are in B.
• B)marginal costs will be higher in B than they will in A.
• C)because total costs are equal, marginal costs will be equal for the two production functions as well.
• D)there is no way to say anything about the relative marginal costs of production in the two production functions without additional information.

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Definitions:

Stereotype

A common, yet rigid and simplified perception or conception of a specific kind of individual or object, usually formed from insufficient data.

Hiring

The process of reviewing applications, interviewing candidates, and selecting an individual for employment.

Promotion

The advancement of an employee to a higher job position or rank within the organization, often accompanied by increased responsibilities and salary.

Norm of Reciprocity

A social rule suggesting that people should repay, in kind, what another person has provided for them; this is the basis for the exchange of goods, services, and acts of kindness.