An is a collection of input bundles that yield the same output level

Q: What is AC(y) for cost function c(y) = y3? Input prices are taken as constants.

A: Average cost measures the per unit cost of production.

Q: his refers to the ratio of a small increment of cost and a small increment of output. a. Increment…

A: Below is the formula for marginal cost:

Q: Consider production function f(L, K) = 10VLK and input prices w :10,r = 90.

A:

Q: • A firm's production function is initially Q = VKL Over time, the production function changes to Q…

A: The initial production function is: The marginal products are:

Q: Define Cobb–Douglas production function.

A: Cobb Douglas's production function is applied to the entire manufacturing industry rather than only…

Q: When a firm is using a technically efficient input combination, the firm is also producing in an…

A: False statement

Q: Explain how input, output and cost are interrelated

A: A business needs to make use of inputs for turning them into outputs that could finally be sold in…

Q: A firm has the following production function: f(x) = ax? – bx³, where x is the only input, a=2 and…

A: The production function is the maximum output that can be produced with the given technology and the…

Q: Solve it correctly last time incorrect solution provides Q) The marginal products of capital…

A: Given the output, cost is minimized when the following condition is satisfied : MPL/PL =MPK/PK It…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

A:

Q: What is meant by an expansion path? Illustrate expansion paths for a normal input and an inferior…

A: The expansion path may be defined as the locus of the points of tangency between the Isoquant curve…

Q: Let the production function be given by Bq_iqj. There are two workers with the skill level of…

A: In terms of economics, a production function is a relation stated with the physical output of a…

Q: Which of the following relationship is correct? When marginal cost (MC) starts to increase; average…

A: MC is the slope of TC(total cost). ATC is the per unit cost of product obtained by the ratio of TC…

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

Q: Cost functions are derived from

A: # Cost function is a representation which helps in predicting the cost of good or service with…

Q: In a relationship among total, average and marginal products, where TP is maximized:

A: The Total product (TP) implies the sum total of output produced using each nit of variable factor.…

Q: Consider the following production function: F (K ,L) = 2K (a) Graph at least two isoquants and…

A: Isoquant means equal quantity. Slope of isoquant is marginal rate of technical substitution given by…

Q: A production process using two inputs, labor and capital, can be written as: Q= 3LK where Q…

A: The production function of the firm shows the maximum amount of output the firm is able to produce…

Q: When do we say that a firm is operating with least cost combination of inputs?

A: The different combinations of the resources used in the production process depend on the economic…

Q: A Cobb-Douglas production function means that as long as either of the 2 input is nonzero, the…

A:

Q: On a diagram, represent graphically the Average Total Cost (ATC). Discuss this shape by fully…

A:

Q: Differences between implicit cost and explicit cost

A: Explicit costs are defined as those costs which leads to an outlay of cash from the business. It is…

Q: What is MC(y) for cost function c(y) = y3? Input prices are taken as constants.

A: Marginal cost measures the change in total cost with an additional unit of production.

Q: Distinguish explicit cost and implicit cost

A: We can classify costs on the basis of payments. These are: 1-Explicit cost 2-Implicit cost…

Q: The of an input is the output per unit of the input

A: Inputs are any resources used in the production of goods and services.  Labor (workers' time), fuel,…

Q: Consider the following information about the input choices and prices, produci the same output in…

A: Cost minimization refers to optimal usage of factors of production such that for production of a…

Q: If output q= 4(√L) then marginal product of L( the slope of the q function) is ........ and when L=9…

A: The marginal product of labour is the increase in output that occurs when an additional unit of…

Q: What is the difference between economies of scale andeconomies of scope? How do firms consider these…

A: The concepts of economies of scope and economies of scale explains the situations when the big firms…

Q: If a firm's production function is given by Q = 700Le -0.02L, %3D find the value of L that maximizes…

A: The firm's production shows the maximum amount of output a firm can produce by using the different…

Q: In a production process, an excessive amount of the variable input relative to the fixed input is…

A: Short-run production: Under the short-run production, there are both factor inputs i.e. Fixed and…

Q: What are the advantages of internal economies of scale ? Explain shortly.

A: Internal economies of scale mean the company improves output when the average cost of the product…

Q: A firm has the production function f(x, y) = x³yº.3, where a>0.7. This firm has Select one: O a.…

A: Given  Production function : f(x,y) = x^a × y^0.3 , where a>0.7. To check whether it has what…

Q: 1. Show that the two-input Cobb-Douglas production function used in this lecture has DRS, CRS or IRS…

A: As asked Q1 is solved below: To show that two input Cobb-Douglas production function has IRS, DRS…

Q: A firm's production is given by f (L, K) = min(3L, 2K), and it faces input prices w = $30/hr and r =

A: Given; Production function; f(L,K)=16min(3L,2K) Price of labor; w=$30 per hours Price of capital; r=…

Q: Consider a beekeeper. The beekeeper has the following production function where the input is the…

A: Table shows the quantity of honey and quantity of apples manufactured at each number of beehives –…

Q: Define economies of scale

A: Economy of scale is a microeconomic term used as an important element of productivity growth.…

Q: As the marginal physical product of a variable input increases, the marginal cost decreases. a.…

A: The cost of one additional unit of output is known as marginal cost. The concept is used to…

Q: Maria produces pizzas using labor, an oven, and flour. When Maria uses 4 workers she can produce 100…

A: The condition that communicates the connection between the amounts of useful elements (like work…

Q: Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90.

A:

Q: Why is a cost function a derived function

A: Cost functions are derived functions. Because they are derived from the technological relationships…

Q: Given the production function Q = 0.5K² – 2KL + L². Find the marginal product of labor and cal.

A: Marginal productivity of labor measures the additional unit of output produced by employing an…

Q: b) Suppose a company has this Leontief production function Q = min(20K,50L) i) List a few…

A: The given production function is the complementary production function. It means the inputs are…

Q: Calculate a cost function from a production function and explain how economic costs differ from…

A: The economic cost is the money value of all resources in the business. It also implies the…

Q: In the long run, the farmer can change both his amount of land and his amount of labor. Suppose he…

A: The graph between labour and output is represented by the table given below, the production function…

Q: According to the information below, which of the following is (are) true? Units of variable input…

A: The total cost of production is the summation of all the fixed cost as well as the variable costs in…

Q: What is the difference between a fixed input and a variable input?

A: Inputs are the resources that are used in the production of output. There are generally four inputs…

Q: The marginal products of capital (MPK) and labor (MPL) are, respectively, MPK = 2000 units; MPL =…

A: The marginal product or marginal physical productivity of an input (factor of production) in…

Q: Consider a beekeeper. The beekeeper has the following production function where the input is the…

A: Hi Student, Thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Show that the r/ship between production function and cost function.

A: Production function demonstrates the output level that can be produced using different quantities of…