Labor and capital can never be substituted for each other. true or false?

Q: Shows the lowest possible input costs (combinations of labour and capital) at which different levels…

A: The firms, and businesses are considered to be the important entities in the markets, as they assist…

Q: Give an example of a Cobb–Douglas production function.What is the marginal productivity of labor? Of…

A: A Cobb-Douglas PF (production function) is homogeneous and homothetic in nature, which means the…

Q: Does optimal use of an input (such as labor) mean maximizing average output (per unit of input)?…

A: If economics is concerned, the answer is surely no, though it is yes to some technical sense.

Q: Why does the marginal product of labour fall as more workers are hired? Motivate your answer.

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

Q: Assuming labor is the only variable factor and paid at a constant wage rate ? show that the average…

A: The productivity metrics (TP, AP, and MP) and the cost measures have some significant correlations.…

Q: Find the optimal solution to capital (K) and labour (L) given the function F(K,L) =…

A: Production function : F(K,L ) = AKa L1-a Optimal production level is achieved at the point where…

Q: The optimal level of production for any company is the level of production that either maximizes…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: If capital and labour are perfect complements then the marginal products of capital and labiour are…

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

Q: Analytically division labor means a. More output b. Equal opportunity c. Equal income distribution…

A: Division of labor is the seperation of tasks in a production process, so that each employee can…

Q: What is meant by an inferior factor of production? How would the firm’s demand for labour be altered…

A: In economic representations, factors of production can be described as inputs that are utilized for…

Q: Assume that capital and labor are substitutes in production. The output effect of an increase in the…

A: Output effect is the effect of a rise in output on the use of any particular input, holding input…

Q: egers or decimals for any numbers in the expression. Round to the nearest hundredth as neec…

A: *Answer:

Q: Show that the quantity of labor(L) and capital(K) that a firm demand decreases with a factor’s…

A: The Cobb-Douglas (CD) production function is a monetary production function with at least two…

Q: If output per per person is .25 and the wage rate is 10,what is the average variable cost?

A: Answer: Given, Output per person=OutputL(units of labor)=0.25Wage rate(W)=10 To find, Average…

Q: Distinguish between the following and show their importance in production theory both in terms of…

A: The short run is the time period during which some factors of production (input) are fixed and some…

Q: Technological progress decreases the marginal product of labor if a new input is developed that is…

A: Marginal product of labor: It is the adjustment in yield that outcomes from utilizing an additional…

Q: "Schumacher agrees with Adam Smith's claim that a division of labor is beneficial to workers." True…

A: Division of labor is defined as the separation of a production process into a number of different…

Q: How are economies of scale achieved in labor? Please answer in own word

A: Companies take pleasure in economies of scale as their producing becomes a lot of productive.…

Q: Labor and capital are substitutes in production.If labor becomes more educated, then, ceteris…

A: The replacement of laborers with machinery is done to improve efficiency and decrease unit output…

Q: Based on Marx's equation to calculate the rate of exploitation, what is the condition when…

A: According to Karl Marx, firms generally try to get maximum output from the labor and provide them…

Q: An increase in the price of capital will the demand for labor if the scale effect dominates. demand…

A: In the production process, labor and capital are two basic inputs to generate output. Some products…

Q: Suppose the production function of a firm is given as: Q = 5L + 10L2 – 2L3 Find the number of labors…

A: Given production function  Q = 5L + 10L2 -2L3 This is also referred as Total Product Average Product…

Q: Whatever aspects of the division of labour do Karl Max and Adam Smith have in common

A: According to Smith's definition, division of labor is the division of labor and specialization with…

Q: At low levels of production, marginal productivity of labor increases as labor increases. At high…

A: The law of diminishing marginal returns expresses that when a benefit is acquired in a factor of…

Q: What is the optimal combination of Capital and Labor under the goal of cost minimization in the long…

A: A basic theory used by an individual like producers in order to determine what mix of labor and…

Q: Which of the following represents the optimal combination of Capital and Labor under the goal of…

A: The marginal rate of technical substitution is the rate at which one factor must decrease when an…

Q: Does additional input of labor entail a steady increase in the output of a firm? Why or Why not?

A: "Factors of production are resources that are used to produce goods or services." There are various…

Q: The total number of output obtained per hour (q) is given by q =KT where L is labor input per hour…

A: The average productivity of labor is qL calculating it using the production function and formula:…

Q: When labor increases from two to three workers, total product increases by per hour.

A: total production is the production produce by producer by using resources at particular period of…

Q: Dinners are prepared in a process with two resources. The first resource has a capacity of 6.2…

A: The time sum of all process stages is used to calculate total labor content. If a procedure has two…

Q: TRUE or FALSE and explain your answer fully If the cost of production is minimized, then all inputs…

A: The marginal productivity (MP) is the additional increase in the total productivity when one more…

Q: You are the owner of a puppet manufacturing company. Suppose that labour is the only variable input…

A: When labor is the only variable factor used in the production process then the marginal cost of…

Q: Suppose that there are 10,000 hours of labor available in Canada, and that 15 hour

A: 10000 hours of labor available in canada 15 hours of labor required to produce 1 unit of cotton 5…

Q: Using examples, explain ways in which the Production function has evolved

A: A production function is a mathematical tool that can be used to study the relationship between…

Q: Recent evidence suggests that output per worker is

A: To find : Which is correct option.

Q: Based on your understanding, does additional input of Labor entails a steady increase in the output…

A: A production function describes the relationship between the physical output of a production process…

Q: Define resources. Discuss the differences between human and capital resources, and give three…

A: Personnel is the people or individuals employed in the company in exchange for a fixed payment.

Q: If there are diminishing returns to labor, then as more workers are hired the total amount produced…

A: The law of diminishing return to scale implies that as the number of a variable input is raised…

Q: Give the three reasons that explain why the division of labor increases an economy’s level of…

A: The division of labor refers to the goods and services produced being divided into various tasks…

Q: Suppose you are a producer and you need to identify what combination of labour and capital you…

A: An isoquant shows all the combinations of two inputs that a firm uses to produce any given level of…

Q: What is the long demand for capital and labor?

A: In the long term, expectations, contractual pay rates, and general price levels will all totally…