follouring production functions exhibits increasing returns to scale in

Q: A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of…

A: A firm's average total cost of production is Rs.300 at 5 units of output and Rs.320 at 6 units of…

Q: Under what conditions do the following production functions exhibit decreasing, constant, or…

A: In a market, the production function represents the nature of the input resources in terms of their…

Q: If the profit function for a firm is given by  P(x) = −3800 + 210x − x2  and limitations on space…

A: The profit function for a firm is given by P(x)=-3800+210x-x2 At Break Even point the profit of the…

Q: economies of scale, followed by diseconomies of scale. increasing costs, followed by decreasing…

A: The average cost is the per unit cost of production . It can be determine by dividing the total cost…

Q: List three disadvantages of the "push" manufacturing approach to production.

A: Under push manufacturing model, business organization produces goods and services based on predicted…

Q: Consider the following production function: Q=KªLB a) Derive the cost function b) Draw the AC and MC…

A: * ANSWER :- * A)        at eqm, MRTS = w/r                         MRTS = MPL / MPK

Q: Define Cobb–Douglas production function.

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

Q: If a firm's average total cost remains constant as output grows, the firm has constant returns to…

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

Q: Suppose a firm has chosen its quantity so that its marginal cost isequal to the market price, and is…

A: Known fact:Economies of scale: The economies of scale is a situation in which output can be doubled…

Q: If a firm has a constant returns to scale production function F(K,L), then the ratio of inputs K L…

A: In long run firm experiences return to scale on its production function which are 1.Constant return…

Q: A manufacturer believes the function C(x) = 0.25x² 20x + 950 - where 0≤x≤ 100 approximates the…

A: Marginal cost refers to additional cost that is incurred from producing one more unit of output. It…

Q: Diseconomies of scale occur when:A) average total cost increases as output increases.B) average…

A: The process of production is the combining of the raw materials and the skills and knowledge of the…

Q: The absolute value of the slope of a firm's isocost line is equal to the ratio of...

A: Isocost line is the line which shows different combinations of labor and capital, or any other two…

Q: A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s…

A:

Q: Given prices for the two inputs as w1 = 1, w2 = 2, find the cost function of the (attached)…

A: Answer to the question is as follows:

Q: If a production function exhibits decreasing returns to scale, average cost will decrease as output…

A: Average cost is the per-unit cost of output.

Q: The production function is clearly visible to the customer in the operations of both goods and…

A: The production function reflects the technical relationship between the inputs and output.

Q: The differences between average total costs and average variable costs declines as a firms output…

A: The difference between average total cost and average variable cost declines as a firms output…

Q: The market for high-quality matsutake mushrooms is dependent on the weather. If the weather is good,…

A: Condition for profit maximization is given as  MR=MC MR is the marginal revenue and  MC is the…

Q: True or false. The U shape of the long-run ATC curve is the result of diminishing returns.

A: Average total cost:The term average total cost refers to the amount or magnitude that comes after…

Q: A competitive firm has a technology function defined as Q = f(K,L) = K^2+ KL. Here, Q is the weekly…

A: Production function : Q = K2 + KL  Price of output = 6  Wage rate (w)= 54  Capital Cost(r) = 25…

Q: Since marginal cost is the reciprocal of marginal product times the input price, it decreases as…

A: The marginal cost refers to the additional cost incurred on production of an additional unit of…

Q: Average fixed cost is 0 at zero level of output True/False

A: # Average fixed cost is given by the ratio of total fixed cost and total quantity.

Q: How will the marginal and average cost curves of the typical pure competitor shift or change as a…

A: Pure competition: It is the market where a large number of independent sellers offer identical…

Q: LAC turns up at higher scale due the presence of

A: LAC that is long run average cost is the average cost with all units incurring variable costs. This…

Q: If a cobb-douglas production function shows decreasing returns to scale (that is the exponents sum…

A: Cobb Douglas's production function is a particular kind of functional form that shows the…

Q: Define the term Mixed Costs?

A: Cost refers to the monetary value that is spent by a company in order to conduct its production…

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 with positive fixed costs encounters CRS and then DRS as it expands production. Show the…

A: Constant return to scale where MP is a horizontal line and In Diminishing returns to scale MP is…

Q: At quantities less than the long-run minimum cost per unit of output, the long run average total…

A: At quantities less than the long-run minimum cost per unit of output that is quantities less than Q…

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: If a production function exhibits decreasing returns to scale, then the average variable costs are…

A: ANSWER STEP-1 If A Production Function Exhibits Decreasing Returns To Scale, Then The Average…

Q: The marginal cost of producing the xth box of DVDS is 15 + and the fixed cost is $100,000. Find the…

A:

Q: If a firm's marginal revenue is below its marginal cost, an increase in production will usually: a.…

A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…

Q: Distinguish between short-run and long-run production decisions and illustrate their impact on costs…

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: For a constant returns to scale production function a. marginal costs are constant but the average…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The following production function and cost constraints are given find the values of L, K and 2 by…

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

Q: Consider the Cobb-Douglas production function: 1. Derive the conditional input demands. 2. Derive…

A: Given  Production function: f(x1,x2)=Ax1αx212-α                ... (1) Let P1 and P2 be the input…

Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.6Q1…

A: GIVEN   A firm has access to two production processes with the following marginal cost curves: MC1 =…

Q: The additional cost of producing one more unit of output is called Variable cost. b. Total cost. C.…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: When production is at level zero then the value of ___________ cost is always zero.

A: Total cost = fixed cost + variable cost Fixed cost always remain constant even when output is zero.…

Q: One of the following is NOT a direct cost  Labour cost  Small factory rent  Equipment rent…

A: Direct Cost could be a worth that may be directly tied to the assembly of specific merchandise or…