Stuck on a few multiple choice questions for my review before my exam next week, if you could pick right answer and a brief explanation for my own benefit that would be greatly appreciated! 1) A widget manufacturer faces a fixed proportion production function such that two workers using one machine can produce 50 widgets

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Stuck on a few multiple choice questions for my review before my exam next week, if you could pick right answer and a brief explanation for my own benefit that would be greatly appreciated!

1) A widget manufacturer faces a fixed proportion production function such that two workers using one machine can produce 50 widgets. If you were to graph the isoquants for q=50, q=100 and q=150, you would see that, regardless of input prices, the expansion path would be:

a.The vertical axis

b.A straight line connecting the points where L=2K

c.The horizontal axis

d.A straight line connecting the points where K=2L

2) Profits calculated by an economist are typically _____ than profits calculated by an accountant because unlike accountants, economists _____ include implicit costs.

a.higher; do not

b.lower; do not

c.higher; also

d.lower; also

3) A profit maximizing firm with short run total cost given by: TC = 5q² + 100q + 250 is currently earning a loss of $200. This firm should _____.

a.shut down because the loss is greater than the fixed costs

b.continue to operate despite the loss because the loss is less than the fixed costs

c.continue to operate despite the loss because the loss is greater than the fixed costs

d.shut down because the loss is less than the fixed costs

4) Long run average total cost is always _____ short run average total cost.

a.less than or equal to

b.greater than

c.greater than or equal to

d.less than