Determine whether the following statements are TRUE or FALSE. Explain your answer using graphs or examples. c. If a firm has a constant return to scale production function, then production capacity is limitless even in the short run. d. In relation to three types of return to scale, the long-run average U-shaped cost never exists.

Q: Which of the following describes increasing returns to scale?     A. Long Run Average Total Costs…

A: The total cost of production refers to the monetary value of inputs used in the production of goods…

Q: Suppose you are production manager of a manufacturing company. Specify the name of your company…

A:

Q: A firm’s production function is given by q = min{M, L1/2}, where M is the number of machines and L…

A: Given production function q=min(M,L1/2) Price of Labor, W=1 Price of Machine, Pm=2

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

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Q: A firm called Anonymous of Toronto makes corrugated cardboard boxes. It decides to increases all of…

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Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: Which of the following statements is entirely correct? OBoth economies of scale and diminishing…

A: Economics of scale refers to impact on the total output if all the input factors are changed. While…

Q: If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?

A: Here input increase 4× and output increase 6×

Q: Which of the following production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given:  There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

Q: 2. Let the production function be as follow: q(L,K) = 10.7 K0.3 Also assume w=2 and r=4 a. Find out…

A: Production costs allude to the costs an organization causes from assembling an item or offering a…

Q: A 15 per cent increase in all inputs leads to only a 5 per cent increase in the output. Are the…

A: Percentage increase in input results to a less than proportionate increase in output is the known as…

Q: Which of the following can wę conclude when production has diseconomies of scale? Average fixed cost…

A: please find the answer below.

Q: Interpret the diagram below and discuss your understanding of the concept of the inflexibility of…

A: In different time the behaviour of input changes like in short run only one factor is changeable…

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: cermine whether the production technology in each situation exhibits constant returns to scale, in…

A: Increasing returns to scale: The proportionate rise in output is larger than proportionate rise in…

Q: rising with output increase Long Run Average Total Costs are decreasing with output increase  Long…

A: Increasing returns to scale occurs when the output tends to increase in a greater proportion as…

Q: Show whether the following production functions exhibit decreasing returns to scale (DRS), constant…

A: Production function shows the output produced in an economy by using the available factors of…

Q: a. Is it possible to have diminishing returns to a single factor of production and constant returns…

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

Q: Answer all the following seven parts. (a) Show the conditions for a Cobb-Douglas production function…

A: The term "long-run" refers to a period during which the production function is determined solely by…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? Explain.

A: The return to scale states the change in the output with the proportionate increase of all the…

Q: Given Q = AK" LP; Qo = 2,000, A = 100, a = 0.6, p = 0.8, w = 50, r = 80 A. Does this production…

A: The technical relationship b/w the quantities of physical inputs and quantities of products output…

Q: Answer the following Questions. Include referencing where additional sources have been used a. Why…

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Q: If a firm has a constant returns to scale production function F(K,L), then the break even price does…

A: Return to scale: Returns to scale is a term used in economics that shows when the output level of a…

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: These occur when doubling all of the inputs to a production process doubles the output. The shape of…

A: Returns to scale denote the relationship between inputs and outputs.

Q: which of the following statements about the short-run production is true   A. Total product starts…

A: We have to find true statement of short run production function.

Q: 600                 2100                 2500                 2600…

A: Capital is a fixed factor. A fixed amount is assumed to be invested, the interest on which is 10%…

Q: Solve for and graph this firm’s isoquant at q = 10. Please label three points along this isoquant…

A: Given q=x113x223            ...........  (1)

Q: Which of the following production functions exhibit decreasing returns to scale? In each case y is…

A: For option (a) y = 3K12L12 we increase each factor by proportion m Now, we have y' = 3(mK)12(mL)12=…

Q: 1. For each of the following production functions, determine whether there are increasing, constant…

A: Returns to scale shows the proportional change in the output when the inputs are changed by a…

Q: . If a firm has economies of scale, it must have increasing returns to scale. True or false? EXPLAIN…

A: Economies of scale provides cost advantage to the firm.Firm is able to lower average cost through…

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: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Returns to scale can be classified into three categories; 1- Increasing returns to scale (IRS) 2-…

Q: Which of the following statements are true regarding the concept of returns to scale? [Check all…

A: Let production function  Q = F(L, K) Double the inputs by a scalar z > 0. Q = F(zL, zK) If F(zl,…

Q: The ff are true about economies of scale except one a. It is concept in cost function b. Costs…

A: Economies of scale arises from efficiency in labor productivity which causes long run average cost…

Q: We classify Three Possible Long-Run Average Cost Curves for a Multiplant Firm; given the following…

A: A planning curve is a long-run average cost curve. This is because a company aims to create an…

Q: Is each of the following statements true or false? In either case, briefly justify your answer. (a)…

A: Answer a. Economies of scale describe a condition in which the average cost reduces as the volume of…

Q: The following equations represent the long-run production functions for four different technologies,…

A: To check whether the function exhibits increasing, decreasing or constant returns to scale, we…

Q: ? SAC А. В. SAC С. SAC AC AC АС ? ? ? SAC D. Е. F. SAC АС SAC АС AC ? ? 1. Of the graphs shown…

A: Returns to scale express the long-run returns as the production scale increases, when the level of…

Q: A firm faces the following production function q = 100L0.6K0.6 The wage rate, w, is $4.00 and the…

A: A firm uses different combinations of factors of production such as labor and capital to produce…

Q: Provethatthetechnologyf(L,K)=L2+K2 exhibitsincreasingreturnstoscale. What is the formula for the…

A: Increasing Returns to Scale: When our inputs are increased by m, our output increases by more than…

Q: Assume that the production function for a firm is defined as: 5 2 3 1 Y = K L . Does this function…

A: The following problem has been solved as follows:

Q: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Given information Production table is given Production Point Capital (K)  Labor (L) Output (Q)…

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.