Mathematical Economics

1.If a production function is homogeneous of degree 1, it exhibits:

• Increasing returns to scale

• Decreasing returns to scale

• Constant returns to scale

• No returns to scale

2. 2.Euler’s theorem is useful in:
   

• 2. Determining output elasticity

• 2. Finding marginal products

• 2. Analyzing cost functions

• 2. All of the above

3.The general form of a Cobb-Douglas production function is:

• Q=AKαLβQ

• Q=AK+L

• Q=K+L

• Q=K⋅L

4.In the Cobb-Douglas function, KKK and LLL represent:

• Capital and Labor

• Cost and Revenue

• Supply and Demand

• Profit and Loss

5.The parameter AAA in the Cobb-Douglas function represents:

• Total output

• Efficiency or technology factor

• Profit rate

• Marginal cost

6.If α>β in Q=AKαLβ, it means:

• Labor is more productive than capital

• Capital is more productive than labor

• Both inputs are equally productive

• Returns to scale are increasing

7.Euler's theorem is primarily used in:

• Differential equations

• Production functions in economics

• Integral calculus

• Statistics

8.Under monopoly, the revenue-maximizing output level occurs where:

• Marginal revenue (MR) = 0

• Marginal cost (MC) = 0

• Price (P) = Marginal cost (MC)

• Demand is perfectly elastic

9.Under perfect competition, a firm maximizes profit where:

• Marginal cost (MC) = Average cost (AC)

• Marginal revenue (MR) = Marginal cost (MC)

• Total revenue (TR) = Total cost (TC)

• Price = Total cost

10.In perfect competition, the price of a product is determined by:

• The individual firm

• The industry as a whole

• Government intervention

• The firm’s total cost