A 25% reduction in labor hours is obtained with 75% learning curve each time the production quantity is doubled. Select one: O True O False

Q: Davy Metal Company produces brass fittings. Davy's engineers estimate the production function…

A: The production function, Q = 500 L^0.6 K^0.8 Wages = w = 15 Rent = r = $50 MPL = 300 L^-0.4 K^0.8…

Q: We consider a CES production function. Y = A + (1 – a)L̟º Q1: As o → 1, prove the Cobb-Douglas…

A: Given production function Yt=AαKtσ-1σ+(1-α)Ltσ-1σσσ-1

Q: An ice cream producer has fixed costs of $70,000 per month, and it can produce up to 15,000 ice…

A: Given the fixed cost = $70000Quantity = 15000Variable cost = $3Selling price = $10

Q: Consider the following production function: Q=KªLB a) Derive the cost function b) Draw the AC and MC…

A: * ANSWER :- * A)        at eqm, MRTS = w/r                         MRTS = MPL / MPK

Q: By completing this table, diminishing returns appear after employing the worker number - 1…

A: The average product is the per unit product. This is calculated by dividing the total output by the…

Q: The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is…

A: The demand and supply of the labor determines the equilibrium wage rate and quantity of labor. The…

Q: A business whose only inputs are labour and capital expands its employment level in the long run…

A: a. When labor is 12 and machine is 4 then TC = 100 × 12 labors + 20 ×4 machines=1200 + 80=$1280TC…

Q: True or False. Please explain The production function f(x1,x2,x3) = (min{0.5x1;0.75x2 })0.5 ·x30.5…

A:

Q: Suppose a firm optimizes the profit function: Y - wN, and the production function is given by Y =…

A: Given: The optimized profit function for a firm is: Y - wN The production function is: Y = 500N1/4 W…

Q: Which of the following profit functions exhibits a linear production function? A.p=Px K0.75L0.50 -…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: If a firm has a constant returns to scale production function F(K,L), then the ratio of inputs K L…

A: In long run firm experiences return to scale on its production function which are 1.Constant return…

Q: Given that fixed cost=230 and variable cost=12Q; the total cost of producing 30 units of output is?…

A: Total fixed cost = $230 Total variable cost = 12Q Units = 30 units  Total cost = ?

Q: True or false 1-If the marginal product of labor is increasing, the marginal cost of production…

A: 1)Due to increase in marginal product,efficiency would increase,therefore cost would decrease.…

Q: A firm’s only variable factor is labour and it produces a single product, X. It also has fixed…

A: In production process, average variable cost and average product are negatively associated because…

Q: Assume a Cobb-Douglas production function of the form: q = 10L0 58 K0.79 What type of returns to…

A: Increasing returns to scales  are present when increasing all factors of production by t leads to…

Q: how that the cost function for a firm with the constant returns Cobb–Douglas production function y =…

A: y = Az1a z21-a  C( p, y) = yp1a p11-a B

Q: K L Q 10 10 1 15 10 2 30 10 50 10 4 60 10 65 10 68 If the cost of labor is $20 per L and the cost of…

A: The firms, and businesses are the entities who are involved in the production of goods, and services…

Q: Consider a company that has fixed costs of $9,700 and a marginal profit of $23 per item. What is the…

A: Here, given information is: Fixed cost: $9,700 Marginal profit: $23 per item To find: Average…

Q: If each unit of labour costs $25 and the cost of capital is fixed at $100, then the average variable…

A: Average variable cost(AVC) is the variable cost per unit.

Q: The law of diminishing marginal returns will occur in a competitive firm as labor input is varied…

A: According to the law of diminishing marginal return, marginal return of labor will decline if we…

Q: Let in the long run production function is TP LK. If Price of labor (wage per hour) is 20 birr and…

A: The output maximization would result in the fact when the marginal rate of substitution of of…

Q: A single product firm intends to produce 20 units of output as cheaply as possible. By using K units…

A: Q = (K)0.5 + L Total cost (TC) = wL + rK = 20L + K, as the cost of labor is 20 and the cost of…

Q: onsider the following short-run production function, where bor (L) is the variable input and capital…

A: Given Q(L) =(6L2 −0.4L3)  We need to calculate maximum value of labor (L),

Q: The cost function of a firm is given by C (x) = 2x² + 3x + 5. Then the average cost producing 5…

A: The total cost of production: It is the function of output. As the output increases the total cost…

Q: Which of the following best describes economies of scale? O They refer to the increase in output…

A: In the short run atleast one input is fixed and in the long run all inputs are variable.

Q: The total cost (TC) of producing computer software diskettes (Q) is given as TC-200+5Q. When Q=10,…

A: The monetary worth of goods and services purchased by producers and consumers is referred to as cost…

Q: Production technology is q = K1/2L. What is the short-run cost function C if K =4, w = 6 and r = 2…

A: Production function depicts the relation between the inputs used by a firm and the output produced…

Q: A Cobb-Douglas production function for new company is given by FF(KK, LL) = KK3/5LL2/5 where K…

A: The optimal quantity of labor and capital would be when MPL / MPK = W / R

Q: A small rural hospital’s management assesses the following production and input price situation with…

A: GivenMPL1=10PL1=5MPL2=4PL2=4

Q: The following question is referred to the following table Q28: Table Q28: Output, Fixed and Variable…

A: (By and large) fewer information costs. Outside economies of scale can likewise be acknowledged by…

Q: Ais Ezhel employs Dj Artz (A) and Bugy (B) to produce songs according to following production…

A: We are going to use cost minimization method to answer this question.

Q: Question 10 With respect to production, the short run is best defined as a time period O lasting up…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A firm's short-run cost function is C(q) = 10q - 12q² + O.5q³ + 400 %3D

A: GIVEN    C(q) = 10q-12q^2+0.5q^3+400

Q: The table below indicates that the total variable cost of producing 150 units of the output is 200.…

A:

Q: A firm has fixed costs of £4,000. Its short-run production function is y = 4x2, where x is the…

A: This is a problem of cost of production, that has been solved  as follows:

Q: Determine the returns to scale for the following production functions. a) ? = K + 7L b) ? = KL3

A: Return to scale:- Returns to scale is a phrase that describes how proportionally fluctuations in…

Q: When production function of a firm is Q = 20K^0.5L^0.5 , price of capital is 5 per unit and price of…

A: Q = 20 K0.5 L0.5 EXPANSION PATH IS CALCULATED AS  MPL/PRICE OF LABOUR = MPK/PRICE OF CAPITAL

Q: Watchshop is a watch manufacturing company that sells low-end wrist wacthes. They hire labour at the…

A: Given: Labor rate= tk. 3949.0 per worker Fixed cost=tk. 10630.0 per week

Q: Aesd ts emoveag There can be at least one input for production which can be considered as fixed in…

A: Short run refers to the period of time in which certain factors of production are fixed while others…

Q: The marginal cost function of a company is given by MC = 5 + x, and the cost of %3D producing 2…

A: Marginal cost function; MC= 5+x Cost of producing 2 unit = 712 OMR Cost function of the company:-…

Q: Suppose a firm's production function is Q = K.25L.25 Derive the long-run conditional factor demands…

A: A firm minimizes cost by employing resources at a point where marginal rate of technical…

Q: = A group of management students are creating a business plan for their proposed shoe brand…

A: Cost of production refers to the monetary value incurred on factors of production. And TC = FC + VC…

Q: Define returns to scale and its implications for production decisions.

A: Returns to scale refers to the percentage change in the output with respect to the percentage change…

Q: 6. Optimize the Cobb-Douglas production function given the following parameters. The maximum 12 and…

A: Here taking derivatives with the function given with respect to L & K: With respect to…

Q: Which of the following production functions will result in a non-linear long-run expansion paths? O…

A: Meaning of Production Function: The term production function refers to the situation under which a…

Q: Suppose that you are starting up a dog-walking service and you know several stay-at-home moms who…

A: The profit is computed by subtracting the total cost from the total revenue of a firm. Total cost is…

Q: A rainfed wheat farmer has available Rs.200. What will be the slope of iso-outlay line when, price…

A: A firm minimizes its cost of producing a given level of output by producing at a point where the…

Q: Consider a generalization of the production function in Example 9.3: q = Bo +B1VkI + B,k+ B31, where…

A:

Q: Refer to the table below. Assume that the company involved now finds that the learning rate is 71…

A: Y = aXb. where Y = Labor Time Required to Produce the Xth Unit X = Unit Produced b = 71 percent…