Answer TRUE or FALSE a) Output per person employed; output per hour worked; output per hectare are examples of total factor productivity measures. b) If a farm's technical efficiency estimate is 0.55, this means farm output can be increased by 55% without using additional farm inputs. c) Mwango grows strawberries. He observes that doubling land under strawberries, labour and other inputs doubles output. This means that production of strawberries is characterized by increasing returns to scale.
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- 18. Assuming England has 60 man-hours (mhrs) of labor resource available for production, and labor is the only resource, the per unit resource cost of wine in England is ____ mhrs/bottle. (PleThe amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed: Crew size 2 3 4 5 6 7 8 9 10 11 12Fish caught (100 lbs/week) 3 6 11 19 24 28 31 33 34 34 33 b) How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?c) How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per person?d) Suppose the owner can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $150 per week. Assuming that the owner of the trawler is interested in maximizing profits, determine the optimal crew size.Recall the production modelMax 10x s.t 5x < 40 x > 0 Suppose the firm in this example considers a second product that has a unit profit of $5 andrequires 2 hours of production time for each unit produced. Use y as the number of units ofproduct 2 produced.1. Show the mathematical model when both products are considered simultaneously.2. Identify the controllable and uncontrollable inputs for this model.3. Draw the flowchart of the input–output process for this model 4. What are the optimal solution values of x and y?5. Is the model developed in part (a) a deterministic or a stochastic model? Explain
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- Table 3-7Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate. Labor Hours Needed to Make 1 Pound of Pounds Produced in 24 Hours Meat Potatoes Meat Potatoes Farmer 6 4 4 6 Rancher 3 8 8 3 Refer to Table 3-7. Assume that the farmer and the rancher each has 24 labor hours available. If each person divides his time equally between the production of meat and potatoes, then total production is Group of answer choices 6 pounds of meat and 4.5 pounds of potatoes. 5.5 pounds of meat and 8 pounds of potatoes. 12 pounds of meat and 9 pounds of potatoes. 5 pounds of meat and 5.5 pounds of potatoes.Why CRS - Constant Returns on Scale would generate (1) No profit-maximizingproduction plan; the only nontrivial production plan involves zero profits. (2) Even when aprofit-maximizing plan exists, it is not unique?Question: Indicate whether the following statemnts are true or false:- a) If the firm increases the volume of used resources by 30%, and the volume of production thus increases by 20%, then there is a positive effect of the production scale. b) Average fixed costs decrease as production increases. c) The economic profit usually exceeds the accounting profit. Thanks!
- Which of the following statements on dynamic efficiency is correct?a. Dynamic efficiency is the efficient use of resources when it is not necessary toinclude considerations.b. It compares today’s value to the future value of extracting a resource.c. The future value of a resource does not need to be discounted in order to compareit the value of today’s resource.d. The value of today’s resource needs to be discounted in order to compare its valueto the future value of a resourceReturns to scale in production: Do the following production functions exhibitincreasing, constant, or decreasing returns to scale in K and L? (Assume Ais some fxed positive number.)(a) Y = K1/2L1/2(b) Y = K2/3L2/3(c) Y = K1/3L1/2(d) Y = K + L(e) Y = K + K1/3L1/3 (f ) Y = K 1/3L2/3 + A (g) Y = K 1/3L2/3 − AThe information on three different technologies named as q, v and x is listed in the table below. Note that all of these technologies use different combinations of two types of factors of production, labor and capital, to produce 1000 units of output. Consider the first scenario where the per unit prices of the inputs, labor and capital are $50 and $25 respectively. Technology No of Labors Capital (tons) Cost value ($) A 10 50 B 30 20 C 50 10 Now imagine that a discovery has been made which has led to labor advancements leading to a reduction in per unit price of labor to $10, ceteris paribus. Which technology will a typical firm adopt under these changed circumstances and why? Using the value of costs found, what is the value of the economic rent for this firm?