a. A firm's long-run total cost can be written as LTC = 3000Q - 50Q2 + (1/3)Q3 and its long-run marginal cost by LMC = 3000 - 100Q + Q2. Find the range over which the firm will experience economies of scale. Explain your answer.

Q: The first two columns in the following table give a firm's short-run production function when the…

A: Given:- Price of capital=$2000 Price of labor=$500 Capital constant at 5 units

Q: A firm producing hockey sticks has a production function given by q = 2vkl In the short run, the…

A: The total cost of production is the simple aggregate of the fixed cost and variable costs, in the…

Q: Specific subject: Microeconomics - Production and Costs Function  Comment on the following…

A: The cost that the firm incurs to produce one additional unit of the output is known as the marginal…

Q: Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to…

A: The total production process of a firm/company is an amalgamation of various costs, the optimum…

Q: 1) Consider a company that outputs 1,000 doohickies. The company's long-run production function is:…

A: Answer;

Q: Given the following production function. If the price of the output is $100. What is the Marginal…

A: Answer; Marginal Revenue product of labor = Marginal Product of labor * Price of output produced by…

Q: Now suppose that the firm's capital input is fixed at K = K 12. Solve the firm's short-run cost…

A: Given perfect complement production function

Q: onsider the following production function: Q = 2K + 6L where K represents Capital, L represents…

A: Production function shows the different combinations of inputs that a firm uses in order to produce…

Q: The local ice cream shop is trying to figure out how many workers to hire, and part of the decision…

A: Answer to the question is as follows :

Q: Suppose that the cost of all inputs (both labor and capitol) decreases. What will happen to the…

A: In economics, inputs are considered as factors of production. That means, inputs are those factors…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: The diminishing returns occurs in the short run. All factor of production are not variable in the…

Q: Suppose a short-run production function is described as Q=30L-0.05L^2 Where L is the number of…

A: Given: Q=30L-0.05L^2 We know, MPL = dQ/dL Therefore, dQ/dL = 30 - L  So, MPL= 30-L = 0 L=30 units

Q: (b) A firm has an average cost function A(q) = 125 q + q 2 16 − 4. where q is the firm′ s output.…

A: Answer: Given: Average cost function; Aq=125q+q216-4where q is the output Calculation: (4) The…

Q: Draw a production function that exhibits diminishing marginal product of labor. Draw the associated…

A: The diminishing product of labor refers to the situation where increasing one additional labor…

Q: Question 10 Consider a firm whose cost function when both L and K are variable is shown in the…

A: Total cost: It refers to the total cost incurred while producing the commodity.Marginal Cost: It…

Q: In a few words, name the reason that production function q = f(L,K) might have diminishing marginal…

A: Answer in step 2.

Q: Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output…

A: Given : Q = 10 √L  L = Q 2/100 Part a) Cost function : C = Rk + wl  K = 100 , R = 10 and w = 5  C =…

Q: Suppose that a firm has the following production function: Q = min{L, K} and %3D rent = wage = 2.…

A:

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: Slope of isocost line is the negative price ratio between the two goods.

Q: Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero.…

A: So  FC=$6 VC=7×$10       =$70

Q: Question: Orla manages a loom that produces flags (F) using thread (T) and dye (D) as inputs. Her…

A: Given  The production function of flags Q(T,D)=T1/2D1/21/2                 .... (1)

Q: Suppose a firm has production function F(L, K) = L6K.6. Following the steps in the slides, derive…

A:

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

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Find the cost minimizing combinations of capital and labor a firm should employ in the following…

A: Given production function: q=K1/2L1/2       .......... (1) Let w be the wage rate and v is the cost…

Q: Question 11 Consider a call center with production function f(L,K)=30L+300K, where L is units of…

A: Given,Production function f (L, K) = 30L+300KWhere, L is the units of labor and K is the units of…

Q: Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of…

A: since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: The following production function describes the production of buttons made of plastic: q = (4K0.5…

A: Production function is given by q = (4K0.5+L0.5) r = 10000 w = 5000   The marginal rate of technical…

Q: A firm's long-run total cost curve is given as: TC (q) = 1000q-30q2+q3. At what quantity is the…

A: The minimum efficient scale (MES) is the balance point at which a company can produce goods at a…

Q: Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of…

A:

Q: a) What is the Long-run cost function if the production function is q = L+ K ? b) Many marginal cost…

A: MARGINAL COST CURVE: A graph that depicts the link between a firm's incremental cost within the…

Q: (a)  Find the short-run cost function, SRTC(q) and marginal cost function, MC(q), assuming that k =…

A: (Q) Given the production function, q(k, L) = ?1/3?1/3 (a) Find the short-run cost function, SRTC(q)…

Q: Suppose that a firm's production function is: 112- q = 10L0.5K0.5 98- Its marginal product functions…

A: Output has increased to 280 units, capital is 14 units. Therefore, q=10L0.5K0.5280=10L0.5(14)0.5…

Q: Question 3. Refer to the information provided in the following figure, If this firm's cost of…

A: Isocost line represents the different combinations of factors of production a firm can afford to…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: Please only answer d Consider the following Cobb-Douglas production function: Y = 10 L^0.4 K^0.4.…

A: Answer - Need to find- Effect on the total costs when wage increase from 20 to 30    Given wage Bill…

Q: Define fixed and variable costs of production. Why do you think bigger firms may have a lower…

A: 1. Variable costs tend to vary based upon the amount of output being produced. They include…

Q: Assume that you have the following production function and input prices in the long run: 2 2 3 2 3 3…

A: Given: The production function and input prices are: W = 8 r = 4 Firm input bundle is (8, 10) To…

Q: Check the following production functions if they meet (i) out increasing L and K, (ii) diminishing…

A:

Q: Question 12. A firm's long-run production function is given by q = LK, where L denotes units of…

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

Q: The table below shows ABC firm short-run production function.  The company hires workers at a wage…

A: “Since you have asked multiple questions, we will solve the first question for you."

Q: A firm's production function is Q = min ( K, 2L ) , where Q is the number of units of output per day…

A: Long-run average total cost (LRATC) is a business measure that indicates the long-run average cost…

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

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

Q: A plant's production function is Q = 2KL. For this production function, MPK = 2L and MPL = 2K. The…

A: Given: Q=2KL MPK=2L MPL=2K w=$4, r=$6 In the long run cost minimization problem, the optimum is…

Q: You are given the following short-run information for an individual firm. Labor (L) is the only…

A: Marginal product refers to the additional output obtained due to increasing one more unit of input.…

Q: The table below presents the output and input levels: K L 100 2 200 250 4 270 Also assume that the…

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

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.