4. Classify the following production functions as to their returns to scale. Do they exhibit constant, increasing, or decreasing returns to scale? Show your proof.

Q: 1. Consider the production functions for good X and good Y: X = K? + L ; Y = 20\KL A. Show and…

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Q: a. Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: A.  Why will firms in most markets be located at or close to the bottom of the long-run average cost…

Q: H8. Which of the following production functions exhibit(s) constant returns to scale?​I. Q = Min…

A: There are CRS if the doubling the all inputs result in the double of output.

Q: (5) Consider the Cobb-Douglas production function f(x1, x2) = Axqx½. (a) For what valucs of a and b…

A: ANS When the rise in the amount of output(o/p) is more than the rise in the amount of input (i/p)…

Q: Question 12 What will be the effect of a technology that cuts the production process by 25% on its…

A: (12). In this question, technology reduces the production process by 25% on its output, assuming all…

Q: 3. Consider the following production function: q = 2L +3/K Assume K = 16, derive the marginal…

A: production-function gives us the maximum output that can be achieved with various…

Q: 3. Show that, for the two-input CES production function 1. 1-p

A: The CES Production Function refers to a neoclassical production function that shows constant…

Q: 7. The following is a production function. 2,000 1,000 100 300 Units of labor (L) a. Draw a graph of…

A: In the production process, different inputs are used to produce the final output. The inputs are…

Q: connection with the Law of the Minimum and the Law of Diminishing Returns, describe how the…

A: Agricultural based production system refers to firms that are producing goods and services based on…

Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.

A: Economies of scale: Economies of scale  are the cost advantage happens due to increase in…

Q: 4. The law of diminishing returns only applies in case where there is at least one fixed factor of…

A: Law of diminishing returns: It explains the production behavior in the short-run. The law of…

Q: 4. A firm has the following production function: Q = 50L + 6L² – 0.5L3 %3D (a) production function.…

A: Answer - "Thank you for submiting the questions.But, we are authorized to solve first sub parts…

Q: While the technology level and the amount of other inputs are constant, as the amount of bit input…

A: Factors are classified into two types: variable inputs and the fixed inputs. Variable inputs vary…

Q: Define constant, decreasing and increasing returns to scale.

A: “Since you have asked multiple questions, we will solve the first question for you. If you  want any…

Q: A motor vehicle assembly plant requires the use of both capital and labour. The Telsa manufacturing…

A: Diminishing return states that as the number of an input increases than the total product will…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: In the long run, the AC curve will be upward sloping when it exhibits to decreasing returns, it will…

Q: 4. F&D Manufacturing company increases all its inputs by 50 percent each. If F&D's output increases…

A: The suppliers, firms, producers, and businesses tend to make up the supply side of the markets.…

Q: "returns to scale"

A: Law of variable production states that if we keep one factor fixed and keep increasing the other,…

Q: 2. Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: Formula to calculate AVC and MC:- AVC=TVCQMC=TCn-TCn-1 where; TVC= Total Variable CostTC=Total…

Q: 1. Consider the production functions for good X and good Y: X = K? +L ; Y = 20/KL A. Show and…

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Q: 6. Consider the following Cobb - Douglas utility function: U = χαγβην *Note, it should be assumed…

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Q: ADVANCED ANALYSIS A firm faces the following costs: total cost of capital = $1,000; price paid for…

A: The firms in the industry are liable to estimate their costs and the benefits for production…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: Capital: Capital is a term that refers to financial assets, including specific funds invested in…

Q: b) Discuss and explain the concept of positive return to scale showing it relationship with the…

A: Output TC of Firm 1 TC of Firm 2 TC of Firm 3 AC of Firm 1 AC of Firm 2 AC of Firm 3 1 100 25 50…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: The total cost incurred by firms includes fixed costs and variable costs. Fixed costs are the costs…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? Explain.

A: Answer - Need to find - The statement is true or false Given in the question - If a firm has…

Q: 2. Which of the following production functions with inputs K, L, and H exhibits Constant Returns to…

A: The firms, and businesses are considered to be important entities in an economy who are involved in…

Q: ADVANCED ANALYSIS A firm faces the following costs: total cost of capital = $1,000; price paid for…

A: We’ll answer the first question only that you have specified. Please submit a new question…

Q: 3.2 Consider the following production function: F(K,L) = K0.5L0.8 State if this function exhibits…

A: Production function shows the technological relationship between factors and production.  Firm…

Q: 12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1,…

A: Answer - Need to find- Which production function shows decreasing return scale  1. Answer - f(x) =…

Q: Under what conditions do the following production functions exhibit decreasing, constant, or…

A: When an increase in inputs results in a proportional increase in output, there occurs constant…

Q: 3.1 Consider the following production function: F(K,L) = K®3L0.7 State if this function exhibits…

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Q: 6. Which one of the following production functions represents an increasing returns to scale…

A: Returns to scale refer to describe the rate at which output rises as one rises the scale at which…

Q: Questions 3. For each of the following production functions, determine whether it exhibits…

A: "In economics, production function indicates the relationship between the factor inputs used in the…

Q: QUESTION 25 Which of the following production functions exhibits constant returns to scale? OA Y=KL…

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Q: QUESTION 5 20 poin Match each of the following terms and descriptions Constant returns to scale when…

A: Economies of scale occurs when long run average cost falls as production increases. Diseconomies of…

Q: As the level of production increases in the short-run, the Average Variable Cost (AVC) curve…

A: In a market, a firm faces different cost curves in the short-run and in the long-run because there…

Q: Returns to scale in production: Do the following production functions exhibitincreasing, constant,…

A: Note: Since you have asked multiple parts, we will solve the first 3 parts for you. If you want any…

Q: 1) Suppose a firm uses capital, K, and labor, L, to produce output. Verify whether the following…

A: Note; Since we can only answer up to three subparts, we'll answer first three please repost the…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: Handcrafting work are critical as far as monetary turn of events. They provide plenty of job…

Q: 31. Applied Optimization Due Wednesday, Mar 25, 11:59pm CDT O Find the economic lot or economic…

A: Let the optimal number of production runs be N and economic order quantity per production run be x.…

Q: Economic1. For each of the following production functions, determine whether there areincreasing,…

A: Returns to scale refers to the proportional change in output when, in the long-run, all factors of…