A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing plant is considering increasing the number of workers to increase production. Does diminishing returns hold in this scenario (yes/no? Explain

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A: Solow Growth Model  Introduction-:…

Q: A motor vehicle

A: The diminishing return is also known as the law of diminishing returns. It states that an increase…

Q: Consider the following equation: Y = F (K, AN) Based on this equation, explain the concepts of…

A: Given,  Y=F(K, AN)where, Y is output K is Capital and AN is Effective Labor.Here, Y is a function of…

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Q: Stage 1 of production starts at Q = and ends at Q = where we find the diminishing marginal returns…

A: TP = Total Product AP = Average Product MP = Marginal Product

Q: The Cobb-Douglas production function is commonly used to model the production of an output, based on…

A: Given information Cobb-Douglas production function Equation Given in A2 ∆QQ=β∆LL Production function…

Q: Which of the following production functions demonstrates constant returns to scale? I. Q=5L+2K II.…

A: Constant returns to scale condition.Q(λK,λL)=λQ(K,L)

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Q: A firm has the following short-run production function: Q = 50L+6L2 -0.5L3 where Q = Quantity of…

A: here we  can find out the given things as follow

Q: increasing, decreasing

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Q: True or false The Law of Diminishing returns implies that the marginal cost of production (MC) is…

A: Answer:  Law of diminishing returns: According to the Law of diminishing returns if an input of…

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Q: What do constant returns to scale indicate that a firm is experiencing? an increasing marginal…

A: please find the answer below.

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

A: According to the law of diminishing returns when more units of variable input are used with a fixed…

Q: Determine the optimal amount of raw materials to be used in this production process.

A: Here, It takes 5 kg to create one output so, MC=5  MR= -Q2+52Q-576

Q: Labor, L, and capital, K, are the only inputs in each of the following production functions: 91 =…

A: The production function is a relationship between the number of inputs (independent) that a firm…

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

A: Diminishing returns means the stage of production where, the returns(marginal) from the use of labor…

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A: Production cost is the monetary value incurred on factor of production . And average total cost is…

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

A: Diminishing returns are important principle of microeconomic analysis in case of consumption as well…

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

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

A: According to the law of diminishing returns when more units of variable input are used with a fixed…

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Q: It costs a firm C(q) to produce q units of output. If C(q) = q° – q² what kind of returns to scale…

A: Given  Cost function  C(q)=q3-q2  To know the return to scale of of production technology, we need…

Q: • Create a table showing sample fixed and variable costs and output at different levels of factor…

A: Here is the table created with sample fixed and variable costs. The formula are also mentioned for…

Q: Identify the returns to scale (increasing, constant, or decreasing) for the following production…

A:

Q: Consider a firm's capital demand problem. The production function is F (K, L) = 16K 3 L3 Suppose L =…

A: Given information: F(K,L) = 16K1/3L2/3  -----------> Production function L=10 --------> Labor…

Q: You have been hired by Kia as manager for its Pakistan operations. Assume following is the short-run…

A: When L1 = K1 = 1, Q1 = 60 x (1)0.3 x (1)0.7 = 60 x 1 = 60 When L2 = K2 = 2, Q2 = 60 x (2)0.3 x…

Q: Please explain why the law of diminishing returns applies only in the short-term period.

A: The marginal product is the change in total production brought by hiring one more of the variable…

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: never

A: When optimal capacity of a firm is reached, then applying additional unit of labour to production…

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

A: The Law of diminishing returns states that if one additional unit of input is added in the firms'…

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…

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A: Number of customers arriving in a day= 210 customers per day Number of customers a teller can serve…

Q: How would you determine that a two-input Cobb-Douglas production function has decreasing returns to…

A: Answer to the question is as follows :

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Q: Consider the statement: “Total output starts falling when diminishing returns occur”. Do you agree…

A: "Total output starts falling when diminishing returns occur." It is a disagreeable statement as…

Q: When production is at level zero then the value of ___________ cost is always zero.

A: Total cost = fixed cost + variable cost Fixed cost always remain constant even when output is zero.…

Q: Which of the following results when an increase in all inputs results in a more-than-proportionate…

A: Answer - a) Diseconomics of Scale -  It is the opposite of economics of scale . Diseconomics of…

Q: A firm produces according to the following production Function: Q= K^0.4L^0.5. MCK is $10 per K, and…

A: Returns to scale is the increase in production due to same unit increase in the inputs, labor and…