a) Why is the marginal product of a variable input like labour likely to increase initially in the short run as more of the variable input is hired? b) Why does production eventually experience diminishing marginal returns in the short run? Ans both.. otherwise don't ans

Q: 6. A plant's production function is Q(L,K) = 2KL + K. The price of labor services, w, is $4, and the…

A: The amount of product produced determines variable costs. Labor and raw materials are examples of…

Q: Question 9

A: Marginal productivity of labor is the incremental unit of output produced due to one unit increase…

Q: Here is the production function for our local brewery's best-selling Halloween pumpkin beer: q =…

A:

Q: The following graph shows the marginal and average product curves for labor, the firm's only…

A: ATC = TC/Q Where, ATC = Average total cost TC = total cost Q= Output

Q: 19,) In the short run, when the firm produces zero units of output, which of the following is always…

A: The firms, and businesses are considered to be one of the most important entities in the economy.…

Q: Suppose that a firm's long-run production function where A>0 Which one of the following is true? ALK…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: According to the law of diminishing return in short run O as we hire more labors, while other inputs…

A: the law of diminishing return is when the marginal product of the output decreases as a single…

Q: Suppose that a firm’s production function is q =L0.5K0.5. This means that the marginal rate of…

A: The production function shows the relationship between the factors of production to be used and the…

Q: The Cobb-Douglas production function with output Q and capital and labor inputs K and L,…

A:

Q: The marginal rate of technical substitution means most likely that O Labor and capital cannot be…

A: Marginal rate of technical substitution is the slope of isoquant that shows combinations of inputs…

Q: 1) Explain in details whether the underlined part of statement is true or false.   In short-run…

A: Production refers to the process of using various material inputs and immaterial inputs in order to…

Q: Last week, the Fur Salon signed and pre-paid a one-year leasing contract for 27 machines. Equipment…

A: Given: Fur Salon signed and pre-paid a one-year leasing contract for 27 machines. Equipment is fixed…

Q: The short-run production function for a manufac- turer of wireless earbuds is shown in the table…

A: The average product is the average output produced by using each factor or input of production. It…

Q: Suppose that q = 50, L= 2, and K= 10 is a point on the production function q =f(L, K). Isit…

A: A production function refers to the output, which depends on inputs such as labor, capital and…

Q: t the following table shows the short run production function where labor is variable and other…

A: Here, L 0 1 2 3 4 5 6 7 8 Total productivity of labor 0 4 10 18 24 28 28 26 22 Marginal…

Q: A firm can manufacture a product according to the production function Q = F(K, L) = KO.50LO.50. (a)…

A: The production function refers to the functional relationship between the given input and the…

Q: If the per unit price of labor, a variable resource, increases, it causes which of the following? a)…

A: If the per unit price of labor of a variable resources increase, then it will change the ATC and MC…

Q: When a firm hired it tenth worker, its factory output increase by four units per month. Would you…

A: There are two forms of inputs in the short-run: fixed and variable inputs. The fixed inputs are the…

Q: Which of the following statements is (are) correct? (x)  Economists distinguish between short run…

A: Short run and Long run are related to the time period of a business or firm.

Q: Why does the marginal product of labor start to decrease after a certain number of workers are…

A: Marginal Product of labour basically means the change in total output, due to one unit change in…

Q: a) Given the production function y = (l'+K")P, what is the technical rate of substitution, the…

A: Answer is given below

Q: The difference between the short run and the long run is that: O A. In the short run all inputs are…

A: The long-run is best defined as a time period during which all inputs can be variable. It provides…

Q: Consider the production function q=5L^(0.3) K^(0.5)  The marginal product of labor is…

A: 1. Given information: Production function q = 5L(0.3) K(0.5)   Marginal product of labor MPL =…

Q: The Rocky Mountain Spring Water Company experiences a surge in orders, because the water of one of…

A: The marginal product of labor (or MPL) refers to the increase in total production when one more unit…

Q: The following graph shows the marginal and average product curves for labor, the firm's only…

A: Marginal cost is the additional cost which occur by producing one more unit of good or service. Here…

Q: The figure below displays two level curves from a firm's production function. Assume that the…

A: It is given that capital gets doubled from2 to 4 and labor is increased but not doubled. Output is…

Q: A technological advancement will cause O a) the production function to shift downward. O b) the…

A: Production function creates a relationship between input and output of goods.

Q: Given the production function y=(ip - Kp )1/p , what is the technical rate of substitution, the…

A: An equation in economics that describes the relationship between the amount of a factor of…

Q: Given the production function y=( ip - Kp)1/p, what is the technical rate of substitution, the…

A: The production function shows the technical relationship between the given input and the achieved…

Q: Consider the production function f (x1, x2)=min{x1, x2}. Assume the price of the inputs are w1 and…

A: Production function : f(x1 , x2 ) = min {x1 , x2 }  This production function is an example of…

Q: Suppose that labor is Valerie's önly Varlable cost and that SHe Has Use the orange points (square…

A: Valerie's performance pizza is a small restaurant that sells pizzas. He owns three ovens in which…

Q: Suppose a firm is operating at an input combination such that MRTS,LK How should the firm adjust its…

A: Firm will maximize profits when MRTS is equal to price ratio of two inputs.

Q: QUESTION 20 According to the law of diminishing return in short run O If we double all inputs,…

A: Marginal product refers to the additional output that is produced with increase in factor of…

Q: Maize is produced according t8 lme q = 100(K° L°) %3D Starting with a capital input of 4 and a labor…

A: a production function gives the technological relation between quantities of physical inputs and…

Q: Tiva has a crafts store that makes jewelry using beads (B) and copper (C). Her production function…

A: Given  Production function: Q=B0.4C0.4                .... (1) Where B denotes beads and C denotes…

Q: hire any more workers? She estimates that the additional workers would generate th following output.…

A: Workers hired Total Product Average Product Marginal Product 0 0 -- -- 1 12 12 12 2 22 11 10…

Q: Solve the attachment.

A: Marginal product of labor shows the change in output due to employment of an addition unit of labor.…

Q: Be the production function Q (K, L)) = (K} +213), that depends on the quantities Used from inputs…

A: Given production function Q=89K13  +2L133

Q: A firm pays each worker (1.e, each unit of labour L) a wage w 4 and pays for each computer (i.e.…

A: Ans. Option (a) Firm employs 6 workers and buys no computers. We are given, w = 4 r = 3 Production…

Q: Which of the following statements about a fixed input is true? O a) Its price is fixed. The quantity…

A: # When we talk about inputs. We often comes across two terms. Fixed inputs and variable inputs.…

Q: In the short run, labor is a hat-making firm’s only variable input. Wage rate is $5.00/hour. The…

A: Marginal cost of a hat, is a cost of producing 1 more unit of hat.

Q: Red Stone Creamery currently hires 5 workers. When it added a 6th worker, its output actually fell.…

A: Marginal product(MP) is the change in output due to an additional increase in the amount of input…

Q: The law of diminishing returns implies that, with the use of capital fixed, as the use of labor…

A: Answer to the question is as follows :

Q: The Cobb-Douglas production function with output Q and capital and labor inputs K and L,…

A:

Q: A firm has the production function F(L, K) = 2 min{L, 10K7 . The current input level is (L, K) =…

A: Marginal product of capital refers to the additional output produced when an additional unit of…

Q: Given the production function y=(l^p + k ^1/p )^1/p , what is the technical of substitution, the…

A: Technical of substitution. The marginal pace of technical substitution (MRTS) is a monetary theory…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.