Managerial Economics and Strategy, 2/e

Questions

All exercises are available on MyEconLab; $\ast =answer$ [&\*|=|answer&] at the back of this book.

1. Production Functions

1. 1.1 What are the main types of capital, labor, and materials used to produce licorice?

2. *1.2 Suppose that for the function $q=f\left(L,K\right),$ [&q|=|f(L,K),&] if $L=3$ [&L|=|3&] and $K=5$ [&K|=|5&] then $q=10.$ [&q|=|10.&] Is it possible that $L=3$ [&L|=|3&] and $K=6$ [&K|=|6&] also yields $q=10$ [&q|=|10&] for this production function? Why or why not?

3. 1.3 Consider Boeing (a producer of jet aircraft), General Mills (a producer of breakfast cereals), and Wacky Jack’s (which claims to be the largest U.S. provider of singing telegrams). For which of these firms is the short run the longest period of time? ...