ECO 204 Week 3 Dis 1

Question 2 - Production The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $20 per unit, and the rental price of capital is $100 per unit. Complete the following table, and then answer the accompanying questions. a. Fill out the table above and show work and formulas used. b. Which inputs are fixed inputs? Which are the variable inputs? Explain how you know. c. How much are your fixed costs? d. What is the variable cost of producing 20 units of output? e. How many units of the variable input should be used to maximize profits? f. Over what range of variable input usage do increasing marginal returns exist? Explain. g. Over what range of variable input usage do decreasing marginal returns exist? Explain. h. Over what range of variable input usage do negative marginal returns exist? Explain. Bonus: What are your maximum profits? QKL 5 0 2 0 10 5 30 5 4 60 5 6 80 5 8 90 5 10 95 5 12 95 5 14 90 5 16 80 5 18 60 5…

In our paper airplane company, some inputs were fixed and some were variable. Match the input to whether it was VARIABLE or FIXED. Paper- Stapler- Staples- Employees- Production space-

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X and Y are factors of production. They are used to make a fixed output, Z, of the product. The isoquants are convex. If Z, the output produced is held constant, will a decrease in X's price always cause the quantity of Y being used to decrease? Explain and show in a graph.

There are two factors of production, X and Y. They are being used to produce a fixed amount of output called A. If the amount of output, A is held constant, and the isoquants are convex, would the price of X going down always mean less of Y is used? Explain why or why not by explaining through the use of a graph.

The feature that distinguishes short-run from the long-run is the*length of time it takes to produce 1 unit.existence of fixed costs.amount of variable resources used to produce 1 unit.the amount of profit the firm can expect to earn. The short-run is*less than a year.when a firm is unable to change some of its inputs.when a firm is unable to change output.when a firm is unable to change its price. The production function tells the firm*which input combination has the lowest total cost.which input combination produces a given output at the lowest possible cost.the maximum output that can be produced from a given amount of inputs.which output is the most profitable. In the short run*all costs are variable.all inputs are fixedthere may be fixed and variable inputs.all production decisions must be made on a daily basis. The law of diminishing marginal returns says that as units of labor are added to the production of an output when all other inputs are fixed, eventually*total product…

What is the difference between a feasible production plan in the short run and in the long run? Give an example of a real product and the major inputs necessary to produce the product and then a short run and long run production plan.

PART 2 Question 1 a. The following table summarizes the short-run production functions for "All Needs Firms". The product of “All Needs Firm" sells for 5 GHC per unit, the cost of input X1 is 8 GHC per unit, and the price of input X2 is 25 GHC per unit. Complete the following table, and then answer the associated questions. Please show how you arrive at your answers. X1 X2 Q MPx1 APr1 AP2 1. 5 10 2 30 3 5 60 4 5 80 5 5 90 6 5 95 5 95 8 5 90 5 80 10 5 60 11 5 30 Answer the following questions using information from the above table. 1. Which input is the fixed input? Which is the variable input? 2. How much is the fixed costs? 3. What is the variable cost of producing 30 units of output? 4. Over what range of variable input usage does increasing marginal returns exist? 5. Over what range of variable input usage does decreasing marginal returns exist? 6. Over what range of variable input usage does negative marginal returns exists? b. You are the manager of a firm that sells output at a…

When it comes to the question on how long the short run is (in the context of production and cost), economists say that the short run is. Calculated by multiplying price and quantity measured in days or weeks context dependent and is given by the time it takes to change the quantity of an input given by the time it takes for the management of a company to make decisions

The period of a time when a firm is able to change all of inputs factors of production is called the:A) economic termB) short runC) accounting termD) long run

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Which of the following are short-run and which are longrun adjustments? IBM hires 200 more software engineers.

Uncertain which options match each blank: a. Decreases, and therefore the curve shifts down b. Is unaffected, and therefore the curve does not shift c. Increases, and therefore the curve shifts up

please help! rate will be given! write the solutions legibly and correctly. ECONOMICS

1) Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $400 per day. To produce one shirt per day, the firm must also spend a total of $55 on other inputs-labour, materials, and other capital. For each additional shirts, the firm incurs the same additional cost of $55. a) Compute the average cost for 50 shirts, 100 shirts, 130 shirts, and 200 shirts. b) Draw the long-run average cost curve for 50,100,130 and 200 shirts per day.

What is the difference between the short run and long run for a firm? How does this relate to fixed and variable inputs?

I need the answers of d, e, f, g

For an increase in output, average costs change by more in the short-run than in the long run, but for decrease in output, the opposite is true. True or false explain in detail.

Hi, can you please assist me with these? 1. What is the difference between production in the short run and production in the long run? Explain the shape of the long-run cost curve in relation to shortrun cost curves?  2. Shannon consumes dresses and lemonade. The price of a dresses is $10 and the price of a lemonade is $30. She is spending all her income on the two goods and her marginal rate of substitution of lemonade for dresses is 2. Is she at an optimum? Explain    Thanks

6. Duane breeds parrots for a living. He has discovered that the production function for parrot chicks (Q) is: Q = K2 L12 where K is capital (for example nest boxes, cages and the like) and L is parrot food. The price of K is $8 and the price of L is $2. a. What type of production function is this? b. Does this production function exhibit constant, increasing or decreasing returns to scale? Explain. c. What is the average product of capital?

93) Explain the difference between the short run and the long run as it relates to the firm's production function. Why is this distinction important to a firm's manager? 94) Use the following information on a hypothetical short-run production function to answer questions a-c. Units of Labor/Day56789 Units of Output/Day120140155165168 The price of labor is $20 per day. Ten units of capital are used each day, regardless of output level. The price of capital is $50 per unit. a. Calculate the marginal and average variable product of each unit of labor input. b. Calculate total, average total, average variable, and marginal costs. c. Can you tell where diminishing marginal returns sets in? 95) When demand for a firm's product decreases, the firm can take a number of steps to adjust costs and quantities supplied to the market. Some are listed below. Which actions are short run and which are long run? Explain your reasoning. a. Layoff 25…

$ I Short and Long Run Average and Marginal Cost TP₁ TP₂ B f A TP3 On the graph above, why does the red line intersect the green dashed line at TP2? The MP(L) in the short-run is equal to the MP(L) in the long-run. the Th MRTS in the Long-run is equal to the MRTS in the long-run None of these are true. The short-run total cost curve must be tangent to the Long-run total cost curve. The period of time considered is so short, both the short-run and long-run are the same. TP

Question 4 The firm can use two inputs, L and K. The price of L= 20 and price of K = 30. Total cost = 300. As usual in the two input graph, units of L are on the horizontal axis and K on the vertical. The slope of the isocost line is [Select] The maximum units of K that can be purchased is [Select] The maximum units of L that can be purchased is [Select] 2 pts Is the bundle of K-9 and L- 5 on the isocost line? [Select]