Define marginal rate of technical substitution. Why does it decrease along the isoquant?

Q: There is no difference between the law of diminishing marginal returns and the law of diminishing…

A: The statement that “There is no difference between the law of diminishing marginal returns and the…

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y= f(x1,x2)=x1ax2b a=b=0.5 the price of factor 1 is 12, the price of factor 2 is 3

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

A: Production function indicates the total production done using the given inputs. An isoquant is the…

Q: Suppose that during an economic boom labour costs rise by 100% and are expected to stay at that…

A: Isoclines are curves on an isoquant map that pass through points with identical marginal rates of…

Q: Suppose the isoquant represents the production of 120 pencils. What will happen to the isocost and…

A: A. If labour become more costly than the isocost line will pivot towards left from horizontal axis…

Q: Elaborate the "“concept of homogeneity and Returns to Scale. Mathematically prove the following…

A: Note: Since the original question has more than three subparts, we are going to answer first three…

Q: F(L, K) = (min{L, K})^1/3 i. Calculate the marginal product for each input, and indicate whether…

A: Marginal product of labor is rise in production value for unit rise in labor. Similar for marginal…

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

A:

Q: 1. What factors give rise to increasing returns to scale and decreasing returns to scale? 2. Define…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Explain the law of diminishing returns of a variable input. What is characteristic for total…

A: Law of diminishing returns to the variable input states that as the variable input keeps on…

Q: An isoquant curve shows All the alternative combinations of two inputs that yield the same maximum…

A: The ‘isoquant curve’ shows all inputs that produces a specific level of output. It helps the firms…

Q: Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5…

A: Answer: option c (LK=100) Explanation: Given, Production function: q=2LK Output level = 20 Along an…

Q: Why is the point of isoquant tangent to the isocost called the optimal combination?

A: An isoquant is a locus of points which shows different combinations of two inputs which can be used…

Q: The isoquants for inputs that are perfect complements for one another consist of a series of:

A: The two goods can be called ‘perfect complement’ if one good can be consumed with another good.…

Q: Example about isoquants and isocost curve

A: Total cost:  The total cost refers to the sum total of fixed costs and variable costs that are used…

Q: Suppose a hole can be dug in one hour with a small shovel and in half an hour with a large shovel.…

A: Iso-Quant Curve (Equal Product Curve) -:…

Q: The marginal product of labor schedule for a firm is given below for alternative levels of labor.…

A:

Q: Let f be a production function such that that, for a fixed k, the marginal product of labour starts…

A: In the above diagram, we can see that: At point B, when AP is maximum then AP intersects MP (AP=MP)…

Q: Explain Isoquant curve with its characteristics

A: Assets, which are the foundations of the economies, are the factors of production; these are what…

Q: When analyzing isoquants, if the marginal product of all inputs double, how would that change the…

A: Isoquants are the curve that depicts a various mix of labor (l) and capital (k) that can be used to…

Q: Explain the properties of production function? Given a production function of this nature AX1a…

A: Production function refers to the physical output of a production process to the physical input of…

Q: What is an isoquant? What is a marginal product? What is the technical rate of substitution? Explain…

A: Utility: The utility is the power or ability of the goods and services that satisfy the consumers…

Q: What is the concept map of the Law of Diminishing Returns to a Factor?

A: The law of diminishing returns explains that if one input in the production of a commodity is…

Q: An examination of the production isoquants in the figure at right reveals that A. the MRTS is…

A: Isoquants show different combinations of two inputs that can be used to produce a given level of…

Q: Along an isoquant, The MRTSfork equals the MP of K/ MP of L. Price of L/ Price of K. O the MP of…

A: The marginal rate of technical substitution (MRTS) illustrates the rate at which one of the factor…

Q: Explain the difference between the law of diminishing marginal returns and the law of diminishing…

A: The utility is the level of satisfaction received by the consumer from the consumption of a…

Q: X and Y are factors of production. They are used to make a fixed output, Z, of the product. The…

A: The main objective of a rational producer is to maximize profit by allocating its resources…

Q: When the marginal product of labor is increasing marginal cost is decreasing OO O O constant…

A: A change in the output caused by using one additional unit of a specific input is known as a…

Q: true or false The closer an isoquant is to a straight line, the closer the inputs are to being…

A: An isoquant refers to a line that shows all the input combinations that yield the same level of…

Q: Exhibited in the table below are the two isoquants and the isocost for a hypothetical firm A B C D E…

A: ISOQUANTS : Labor Capital Labor Capital 40 1 80 1 28 2 38 2 18 3 28 3 10 4 20 4 4 5 14…

Q: Recall the Cobb-Douglas production function we worked with in class, f (21, 2) = z} z} . What is the…

A: The marginal rate of technical substitution (MRTS) measures the amount of one input needed to give…

Q: Answer the following questions clearly in computer-typed print with Make sure you label your graphs…

A: The isoquant reflects the different consumption combination of two inputs (L and K) that a firm can…

Q: If isoquants are plotted on a graph with capital measured on the vertical axis and labor on the…

A:

Q: A T-shirt screener can screen t-shirts (q) in two different ways. He can either use a fast screening…

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

Q: Define and then derive the expression for the marginal rate of technical substitution.

A: Marginal rate of technical substitution (MRTS) measures the rate at which one factor must give up in…

Q: The fast food company Schnabb uses labor and capital to produce its product. Holding the production…

A: Profit maximisation is a firm's financial goal. If its total output remains fixed in the near run…

Q: A firm’s short-run marginal product of labour function is MP = -3L^2 + 22L - 5. Use indefinite…

A: A production function illustrates the relationship between the quantity of inputs used and the…

Q: There is no difference between the law of diminishing marginal returns and the law of diminishing…

A: Answer: The given statement is false. Explanation: Law of diminishing marginal returns: When a…

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: a. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the…

A: The three criteria can be explained as: The convex shape isoquant- The nature of the production…

Q: Graph the isoquant below and explain   Labor (x) 50 38 28 20 14 10 8 7 Capital (y) 3 6…

A: The factors of production refer to the inputs which firms use in order to produce the desired amount…

Q: If the marginal product equals the average product, we are at the ____. point of the ____ curve.

A: The output produced by the firm with the given resources in a particular time period is known as the…

Q: Consider the followng production function: 3..3 q = x;x: where x1 and x2 measure the employed…

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Q: Explain Isoquant curve?

A: For the production of goods and services firms requires factors of production namely land, labor,…