Define constant, decreasing and increasing returns to scale.

Q: QUESTION 6 Which of the following production functions exhibit constant rehurns to scale? In each…

A: Given: The various production functions are, as: 1) Y = K1/2L1/3 2) Y = 3K1/2L1/2 3) Y = K1/2 + L1/2…

Q: The following table represents data for a salon. Draw a graph showing total product , marginal…

A: Total product refers to the total output produced by the firm with the given input at a specific…

Q: I need assistance with this assignment.

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Q: Answer the attached question

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

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: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

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Q: Is it true the statement that if average production cost is increasing, a firm’s technology exhibits…

A: In a two factor production function, the scale of production refers to the quantity of labour and…

Q: Briefly describe the flow of costs in a manufacturing company?

A: Cost flow refers to how or the direction by which costs pass through a organization. Usually, the…

Q: While the technology level and the amount of other inputs are constant, as the amount of bit input…

A: Factors are classified into two types: variable inputs and the fixed inputs. Variable inputs vary…

Q: d. Briefly explain the meaning of Economies of Scale and explain three reasons why a firm may enjoy…

A: An objective of a firm is to maximize its profit. A firm can increase its profit when its total…

Q: 6. Which of the following are true (check all that apply) Note: IRTS=increasing returns to scale,…

A: ‘Return to scale’ means refers to the change in productivity i.e. proportion change in output(Y) due…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: In the long run, the AC curve will be upward sloping when it exhibits to decreasing returns, it will…

Q: In a single diagram. Illustrate AVC and ATC.  Explain why the two curves get closer to each other as…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: does the isoquant map look like if there are 1)continuously increasing returns to scale;…

A: The return to scale can be shown diagrammatically on a development way "by the distance between…

Q: Explain how a firm may transition from the short-run production decision to the long-run production…

A: In short-run, Price = short-run marginal cost (SMC). The firm would produce that output at which P…

Q: 3. The following graph shows a department store's long-run average cost (LRAC) curve. The output per…

A: Since both are distinct questions, we will answer the first one (3) only. Please resubmit the other…

Q: 2. Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: Formula to calculate AVC and MC:- AVC=TVCQMC=TCn-TCn-1 where; TVC= Total Variable CostTC=Total…

Q: 6. Duane breeds parrots for a living. He has discovered that the production function for parrot…

A: Part d) Q = k1/2 l1/2 MPK = 1/2 (l1/2 k -1/2) Yes, capital obeys "the law of diminishing returns"…

Q: e graph below illustrates a series of short-run average cost curves, numbered AC1 through AC5, which…

A: Economies of scale occurs when long run average cost falls as more output is produced. Long run…

Q: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

A: LRAC refers to long run average cost and SRAC refers to short run average cost. Long run average…

Q: Use the diagram of production function to explain why variable costs increases at a decreasing rate…

A: Cost are of production two types: Variable cost and the Fixed cost. Variable cost is the cost that…

Q: Q7. Provide your own examples for the questions below. a. An example for economies of scale using…

A: Economies of scale occur when the average cost of production decreases as output increases.…

Q: 4.7 When to Use the Principle of Diminishing Returns? You are the manager of a firm that produces…

A: Return to Scale: The return to scale refers to the behavior of output when there is a change in all…

Q: 44)How does the average-fixed-cost curve behave?  A. It declines as long as it is above marginal…

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

Q: please help

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: 4. A firm producing cars. The production function for shoes (Q) is: Q = K"² L"² where K is capital…

A: Answer -

Q: M/c question - Micro 21)For a firm, what does the production function represent? A. the…

A: 21) option c is the correct answer option-c       quantity of inputs and quantity of output…

Q: For the cost function c = √q, show that marginal and average costs are always decreasing.

A: The firm produces goods and services which would result in the firm to incur cost. The production of…

Q: what is the importance of long run and short run production in production theory?

A: A production function is a functional relationship between the inputs which are used in the process…

Q: When it comes to the question on how long the short run is (in the context of production and cost),…

A: Factors of production: - The inputs that are used to produce goods and services are known as the…

Q: technology can exhibit constant returns to scale and diminishing marginal product to each factor.…

A: A) TRUE The law of diminishing marginal returns is a hypothesis in financial matters that predicts…

Q: hi  Suppose you build bird houses. One day, you double the time you spend building and double the…

A: Consider the definition of returns to scale. When we change all factors of production by a certain…

Q: I only need help with letters D. And E. ONLY!!!!

A: Note- Since you have asked for D and E so I am answering only that parts.

Q: True or false. In general, production can display diminishing returns in all variables but still…

A: Diminishing returns are defined as a decrease in output due to an increase in the input after an…

Q: Microeconomics - Production Function Find the returns to scale of the following production…

A: In order to find the returns to scale of the production function , We put a constant before every…

Q: Capital (K) Labor (L) Total Product (TP) Average Product (AP) Marginal Product (MP) 10 0 0…

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Q: Hammas Dadani operates a business and uses the following table for total output or total product as…

A: 1. Marginal Product of Labor (MPL) The marginal product of labor is the increase in total production…

Q: 3. We often work with production technologies that give rise to initially increasing marginal…

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: 4. Which of the following industries do you think are likely to exhibit large economies of scale?…

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

Q: Briefly explain what is meant by the term "variable costs" and provide three examples of same.

A: Total cost of production has two parts- fixed cost, which remains fixed along the production and…

Q: 4. )At Alan's landscaping firm, labor is fixed in the short run. Increasing his use of capital…

A: The first stage is increasing returns, the second stage is diminishing returns and the third stage…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: Handcrafting work are critical as far as monetary turn of events. They provide plenty of job…

Q: 3. An electronics plant's production function is Q = 5LK, where Q is its output rate, L is the…

A: Given:- Here we have, Q=5LK, where labour = L=$1 per unit and capital = K=$2 per unit also Q=1000…

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.