Question 1

5. If total cost is TC(Q)=3Q^2+192 and price is P=36, optimal production is......
7. A curve that shows all of the possible combinations of inputs that produce the same output.
8. ......... surplus is defined as the difference between the consumers' willingness to pay for a commodity and the actual price paid by them.
10. P=AVC is the ...... point for a firm.
12. Economies of ........ exists for multiproduct firms when the average cost of one product falls as the production of another product increases.
13. ......... cost is the cost of production that varies with output level
15. The integral of supply is the ....... of the producers.

1. Perfect ........ production function can substitute one input for another in a fixed ratio.
2. f(K,L)=min{2L,6K,8H} is a .......... transformation of f(K,L)=min{L,3K,4H}.
3. If a firm’s output changes in exact proportion to changes in the inputs, the firm exhibits this type of returns to scale
4. The allocation that maximizes total utility is Pareto efficient if there is not any .........
6. Economies of scale occur when the average cost of production ...... as output increases.
9. A situation in which one company has no competition in the sale of a particular product.
11. In a competitive equilibrium, demand ....... supply.
14. It is the variable cost per unit of output.