4. An iso-quant gives: O Combinations of output that can be produced using different levels of inpuis b. Combinations of inputs that can produce a constant level of output C. Combination of out puts that can be produced with a given level of upuis. d. None of the above is correct
Q: When a profit-maximizing firm is earning profits, what can identify those profits? A. (P – AVC) × Q…
A: Profit maximization is the goal of all the firms operating in the market.
Q: (a) Explain the law of diminishing marginal returns in the Theory of Production. (b) Does this law…
A: The law of ‘diminishing marginal returns’ states that with the increase(↑) of a single production…
Q: 1. Medical care is the process of combining certain inputs to yield an output.TrueFalse
A: Healthcare is dissimilar from other services because the definition is not clear. Every customer in…
Q: We have assumed Hhe production functiorn AF (K.L) eahibite a anstant returrns to cale. That 1s IF He…
A: The implicit price deflector or GDP deflector tells us about the current price of goods and services…
Q: Q: Theoretically and graphically explain how firm choose optimum combination of inputs in short run…
A: Answer: Assumptions: Two inputs, Labor (L) and Capital (K) Price of labor, wage rate (W) Price of…
Q: II. Helping Conchita-Crem to minimize costs Suppose that the labor cost of Conchita-crem is $20 USD…
A: Given production function q=10L^0.5 K^0.5 Price of labor=$20 Price of capital=$5
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: Here, the given table shows the number of hours needed to produce 1 unit of output and number of…
Q: Is it possible to avoid Diminishing Marginal Return? Why? Explain comprehensively.
A: The diminishing marginal returns would result in the associated with the utility and the production…
Q: What is the signipicance of the nelationship of Input (X), TP ,ÀPP amd MPP to productian Mamagement?
A: The firms, and businesses tend to operate in the market where they supply various goods and services…
Q: How firm choose optimum combination of inputs in short run and long run explain theoritically and…
A: There are two type of period in economics which are short run and long run. In the short run, there…
Q: The figure below depicts the production function of grain for farmers under average growing…
A: In a year of a bad drought, the production curve can turn downward for a large number of farmers.…
Q: Given a production function depicting the response of paddy rice to fertilizer application, Y = 3X+…
A: Production function : Y = 3X + 9X2 - X3 MPP(Marginal physical product ) refers to the additional…
Q: The following question is based on the production function D=80L0.7K0.3 where the cost of labour is…
A: The production function shows the relationship between the factors of production and the quantity of…
Q: 7 Output for a simple production process is given by Q- KL, where K denotes capital and i denotes…
A: Here, given information is: Price of labor (PL)= $10 Price of capital (PK)= $2 Marginal product of…
Q: combination of labor and capital maximizes output with a cost of Birr 720? b. What is the maximum…
A: With the given production function, it can be inferred that the firm uses two inputs labor (L) and…
Q: 32. What ty pe of a production function which results from ite marginal phyaical product (MPP) that…
A: Production function is the mathematical expression to show the connection between the output…
Q: The production function for good X in the table below exhibits increasing marginal returns to…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: The production function for Good X: AP OAK) Marginal Pruduct of Capital AP, OK Average Product ol…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Productivity is O A. the value of profit divided by the number of production workers O B. the value…
A: Hello, thank you for the question. Since there are multiple questions asked here, only the first…
Q: Q1 a) Given a production function depicting the response of paddy rice to fertilizer application, Y…
A: Production function : Y = 3X + 9X2 - X3 MPP(Marginal physical product ) refers to the additional…
Q: 1. Suppose that a producer has the following production function: -13 Where Q is output, and L and K…
A: A production function shows the relationship between input and output. it shows how much input is…
Q: 1. Suppose that the output sells for $5 and the input sells for $4. Fill in the blanks in the…
A: The value of the marginal product (VMP) of good is given as the market value of an extra unit of…
Q: 34. An iso-quant gives: Combinations of output that can be produced using different levels of inputs…
A: A graphical representation of all the possible combinations of two or more inputs that would give…
Q: 2. A firm requires labor and capital to produce a given output. Labor costs $8 0/6 per hour and…
A: A firm will maximize profit or minimise cost at a point where marginal rate of technical…
Q: The production function for good X in the table below exhibits increasing marginal returns to…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: A bottling company uses two inputs to produce bottles soft drink sludge: bottling machines (K) and…
A: Given, Cost of machine (r) = $1000 per day Cost of labour (w) = $200 per day Marginal product of…
Q: 6. Given the following diagram and the information that input a is the only varı- able input, answer…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Q(A) Use the following information to show the producers equilibrium under the isoquant/ isocost…
A: The producer's equilibrium refers to the point where the isoquant curve is tangent to the isocost…
Q: Suppose Mr. Saad is a producer of Lola Loo chocolate, following is the information available of his…
A: The firm can only change the quantities of the variable inputs i.e. Labor in the short run and the…
Q: 1. A company operates plants in both the United States (where capital is relativelycheap and labor…
A: Answer b
Q: -. All inputs can be varied in O Short run
A: To find : When do input varies.
Q: Ray hires students to mow lawns in the summer. The table sets out Ray's total product schedule.…
A: The marginal product of labor is the addition to the total product when an additional unit of labor…
Q: - All inputs can be varied in O Short run O Long run Both neriods
A: To find : How can be inputs varied.
Q: QUESTION 2 An isocost line reveals the OA costs of inputs neoded to produce along an expánsion path.…
A: In a market, when a firm purchases input resources, it will be considered as cost or outlay of…
Q: 2. Consider the following graphical presentation on optimal combination of a firm: Capital Construct…
A: The curve which connects the point of optimal or most efficient quantities of 2 factors of…
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: Comparative advantage refers to the ability of a country to produce output at a lower opportunity…
Q: Factors of production are inputs used to consume goods and services. a. False O b. True
A: Factors of production, term utilized by social scientist to denote the economic resources, each…
Q: Let Srepresent the amount of steel produced (in tons). Steel production is related to the amount of…
A: We have The production function for steel: S=20L0.30C0.70 Where L is the number of labor units used…
Q: In the example presented by this graph, at what number of workers does the point of diminishing…
A: Diminishing MP(marginal product) shows that when the labor(number of workers) rise, the MP falls and…
Q: Exercise: If the fixed Input capital is k* = 3 and the variable input of labor is from 0 by 2's to…
A:
Q: This one should test whether you really understand this stuff by changing the story just enough that…
A: Given, Cost of Installing beehives = $100 each Price of Honey = $20 each No. of beehives Total…
Q: Stacy's current production level, an extra bunch of scarves adds 20 extra hats. Each bunch of…
A: Marginal expense alludes to the expansion or decrease in the expense of producing another unit or…
Q: What is the definition of equal product curves in microeconomics? Mention the important applications…
A:
Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…
A: When the inputs are perfect complements, isoquant is L-shaped.
Q: Question 1.Find the optimal input bundle, (L ,K), when r = $11a, w = $38, F(L,K) = L 2/4K 1/4 and…
A: A production function in economics describes the technological relationship between the quantities…
Q: Suppose that aKC = 5, capital used to produce one yard of cloth. aLC = 8, labor used to produce one…
A: As you remember that there are 3 Central Problem . 1. what to produce 2. How to produce :- it is…
Q: 34. An iso-quant gives: S Combinations of output that can be produced using different levels of…
A: An Iso-quant is a position of points indicating all the efficient ways of mixing the different…
Step by step
Solved in 2 steps with 1 images
- Give the three reasons that explain why the division of labor increases an economys level of production.Deborah is a skilled toy maker who is able to produce both boats and kites. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Choice Hours Producing Produced (Boats) (Kites) (Boats) (Kites) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Deborah's initial production possibilya) What are the determinants of production? Explain.b) Suppose that an economy’s production function is in the Cobb–Douglas form with parameter α = 0.3. What is the production function equation? What does each component stand for?
- Suppose there are two inputs for production, labor and capital. The firm’s production process isdefined by the following production functiony=f(L,K).Howdoweinterpretthefirm’smarginalrateof technical substitution? a)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same cost level b)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm produces one more unit of output c)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same level of production d)a) and b) are correct e)a) and c) are correctSuppose that aKC = 5, capital used to produce one yard of cloth. aLC = 8, labor used to produce one yard of cloth aKF = 4. capital used to produce one calorie of food aLF = 6. labor used to produce one calorie of food. Which of the following is True? a. Cloth is labor intensive. b. Food is labor intensive. c. Both food and cloth are labor intensive. d. Both food and cloth are capital intensive.Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 2. Show in a budget line illustration where pokemon cards is in the x-axis and y-axis is the sticker. 3. Find the slope using the illustrated result.(I only need the answer for number 3.)
- Draw a well behaved production function and show the 3 stages of production. What distinguishes these 3 stages in production1. Medical care is the process of combining certain inputs to yield an output.TrueFalseQ(A) Use the following information to show the producers equilibrium under the isoquant/ isocost approach. a) Data below shows the combinations of two factor of production. Use the following data and plot the isoquant curve. combinations units of uk unit of l A 18 2 B 12 3 C 9 4 D 6 6 E 4 9 F 3 12 G 2 18 (b) Let the price of labor is Rs 1 per unit and the price of capital is Rs.4. Total expenditure of the firm is Rs.36 then find two bundles to plot isocost line.