Q47 In the long run, the law of diminishing marginal returns... a. Sometimes holds, depending on the production process. b. Does not hold because technology varies. c. Is exactly the same as in the short run. d. Does hold, regardless of the production process. e. Is not relevant because there are no fixed factors of production.

Q: Another important law in economics is the “law of marginal returns or the law of…

A: The law of marginal returns indicates that when the firm uses more of the same variable input to…

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

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: In a short-run production process, a diminishing marginal product of labor explains why marginal…

A: Diminishing Marginal product means that the increase in the output from the additional labor…

Q: Capital (K)  Labor (L) Total Product (TP) total fixed cost (TFC) total variable cost (TVC)…

A: 1.1. Assume that the cost of capital is 20 and the cost of labor is $10. Total fixed cost (TC) can…

Q: How would the long run total cost curve change if the price of capital increase? Please explain your…

A: Long run Total Cost (LTC) insinuates the base(minimum) cost at which given level of yield can be…

Q: The per-unit cost of an item is its average total cost (=total cost/ quantity). Suppose that a new…

A: Here, the per-unit cost of an item would be defined as an average total cost which is calculated as…

Q: What are the merits/advantages and the demirits/disadvantages/limitations of law of diminishing…

A:

Q: Another important law in economics is the “law of marginal returns or the law of increasing costs".…

A: Marginal return refers to the additional output that obtained by increasing one more unit of input.

Q: The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new…

A:

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: Productivity decreases when O a. Output and hours worked decrease at the same rate Ob. Hours worked…

A: Productivity refers to the ability of the business to produce more output. Productivity determines…

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: Assume the average cost when producing 4 units is 10, the average cost of producing 6 units is 8,…

A: The table shows output and AC:

Q: True or false The Law of Diminishing returns implies that the marginal cost of production (MC) is…

A: Answer:  Law of diminishing returns: According to the Law of diminishing returns if an input of…

Q: Which expression is another way of saying "marginal cost"?                Scarce resources…

A: Marginal cost is the increment in total cost for producing additional units of a commodity. It is…

Q: a) The production function q = 9KO.8LO.1 exhibi [ increasing returns to scale, constant return to…

A: Increasing returns to scale occurs when the output increases by a larger proportion than the…

Q: Distinguish between explicit and implicit costs, giving examples of each. Why does the economist…

A: Externalities: It occurs in the economy when the production of goods and services and the…

Q: apital equipment per worker ($ thousands) g statements are correct? e function is the marginal…

A: *Answer:  Correct options are a) and b) °The marginal product of capital is the additional output…

Q: 3. (Long-run costs,) Carmela's pasta factory employs workers and pasta machines according to the…

A: Given:- Production function: f(L,K)=l0.5K0.5Hourly cost of capital=$10Hourly cost of worker=$40 To…

Q: Explain the law of diminidhing returns whith a relevant example

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Q: In the short term, the company produces 800 units of production. The average variable costs (AVC) 93…

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

Q: Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and…

A: Implicit Cost: Implicit cost is due to the factors which are entrepreneur himself owns and employs…

Q: Marginal analysis (a.k.a. thinking at the margin) Multiple selects     assumes dimishing marginal…

A: Marginal analysis is the process of comparing additional benefits accrued to the additional costs…

Q: Which statement is nottrue regarding the total variable cost curve? Select one A. It shows the…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: What is the difference between economies of scale andeconomies of scope? How do firms consider these…

A: The concepts of economies of scope and economies of scale explains the situations when the big firms…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: Capital: Capital is a term that refers to financial assets, including specific funds invested in…

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average Price The total cost is divided by the number of things produced to get the average cost.…

Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…

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

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

Q: Expalin the law of diminishing returns or diseconomies of scales ?

A: In an economy, the law of diminishing returns and diseconomies of scale are two different concepts,…

Q: Fill in the missing parts in the following tables to illustrate the behavior of production and costs…

A: The total cost incurred by firms includes fixed costs and variable costs. Fixed costs are the costs…

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

A: Answer - Need to find - The statement is true or false Given in the question - If a firm has…

Q: Which statement is nottrue regarding the total variable cost curve? Select one O A It shows the…

A: The total variable cost is the cost incurred on the variable factors of production.

Q: tate the law if Diminishing Returns. Give example.

A: Law of diminishing returns also known as law of variable proportion

Q: If production increases, what happens to average fixed cost (AFC), does it increase only, decrease…

A: The average fixed cost (AFC) decrease only if the production increases.

Q: Please explain why the law of diminishing returns applies only in the short-term period.

A: The marginal product is the change in total production brought by hiring one more of the variable…

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: a. What is optimization? How does it blow up the myth about profit being a result of a mere…

A: In order to achieve the “best” design that is being relative to a set of constraints or criteria…

Q: Q)Distinguish between explicit and implicit costs, giving examples of each. (a) What are the…

A: In common usage, cost refers to the monetary value of goods and services purchased by producers and…

Q: a) Explain The Law of Diminishing Returns. b) Distinguish between the terms short run and long run…

A: In the production process, different inputs are used to produce the final output. Each input has its…

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: The law of diminishing returns implies that, with the use of capital fixed, as the use of labor…

A: Answer to the question is as follows :

Q: If production increases, what happens to average total cost (ATC), does it increase only, decrease…

A:

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.