2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 15 K=2 K=3 K=4 20 25 28 30 31 (1) Suppose that K is fixed at 2. Does this production function exhibit diminishing marginal returns? (ii) Does this production function exhibit constant returns to scale for all values of K and L? 3 10 16 8 15 21 12 19 25 22 28 17 24 30

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A: Fixed refers to the cost which does not change with change in the output level. The variable cost…

Q: Consider two firms with identical cost structures competing each other in the market of a good whose…

A: P=50-Q    =50-Q1-Q2TR1=(50-Q1-Q2)Q1     =50Q1-Q12-Q1Q2MR1=50-2Q1-Q2C=10+Q2MC1=2Q1Now, for…

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A: Introduction,

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A: Answer is given below

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A: Yes there a commonality of the customer’s needs across countries.

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A:

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A:

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A:

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.