Relate the law of diminishing returns to a firm’s short-run production costs.

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: Which of the following statement(s) describe sunk cost? 1) All of the answers are correct 2) It…

A: To produce a good, two types of cost are incurred, variable cost and fixed or sunk cost.

Q: If a firm produce zero, its cost must be zero in the short run? C True C False

A: The total cost of production can be divided into two components namely fixed cost and variable cost…

Q: Economies to scale refer to Select one: a. the point at which marginal cost equals average cost.…

A: "Long-run average cost curve is used to determine the scale of production process."

Q: Average fixed costs of production will rise at a fixed rate as more is produced. appear as a…

A: In microeconomics, the average fixed expense is the fixed expenses associated with the production…

Q: Suppose a wind turbine producer faces this production function: Q=0.25KL with MP = 0.25K; MPk =…

A: Given wage = 12 and rental cost = 22

Q: 0.2 2. A seller's production function is q = f(k,1) = (kl), w = v = 1, and the competitive output…

A:

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

A:

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: Q. 1. Use production function q(L, K) = L'"ª KV* and derive the followings: (a) (b) (c) (d)…

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

Q: Q1. Over a reasonable range of quantities, firms producing goods A and B have th following cost…

A: Cost function : C = 100 + 4qa + 8qb - 2qaqb  Economies of scale refers to the gradual decline…

Q: Which of the following would increase a firm's average total costs? economies of scale an increase…

A: Average Total Cost: The average total cost (ATC) is the per-unit cost of producing goods and…

Q: Define and explain the following terms associated with long run production Accounting profit…

A: The short-run is the time period where at least one factor of production is fixed and others are…

Q: Consider the following hypothetical firm that is normally producing 200 units of the product per…

A: Variable costs  are costs that extrade because the extent changes. Examples of variable costs are…

Q: Companies can typically maximize their prots by operating at the minimum average total cost curves,…

A: Economic profit= (Price-ATC) *Quantity

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: X and Y are factors of production. X's marginal product is 30 and Y's marginal product is 20. X=5…

A: Total cost is minimized when (MPx / Px) = (MPy / Py) Here, MPx / Px = 30/5 = 6 MPy / Py = 20 / 4 = 5…

Q: (9) The short run is a time period in which: (a) all resources are fixed. (b) the level of output is…

A: As you have not mentioned the exact question as per our policy I am answering first three questions.

Q: Given the production function of F(K,L) = sqrtKL If the short run has a fixed K of 5 units, which…

A: Here the production function of F(K,L)=KL the short run fixed capital k=5 units so, F(K,L)=KL=5L…

Q: Suppose the firm's production function is Q = 2KL, where Q is units of output, K is units of capital…

A: We can find out the short run production function using the capital K= 4.

Q: A company has the following cost functions in the short run, where the production level, Q ,  is…

A: During the period of short-run, there are two sorts of cost experienced by the business firm:  fixed…

Q: Demonstrate your understanding of the law of diminishing marginal returns.

A: Law of diminishing marginal productivity states that the marginal production from the additional…

Q: A production function for a good Q uses inputs of labor (L) and capital (K) and takes the form Q=LK.…

A: Cost  The number of goods and services necessary to produce or manufacture is referred to as the…

Q: (Production in the Short Run) Complete the following table. At what point does diminishing marginal…

A: Marginal product refers to the additional output that obtained by increasing one more unit of…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: 35) Long-run cost curves are U-shaped because A) of the law of demand. C) of economies and…

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

Q: A firm's production is given by f(L, K) =;min(3L, 2K), and it faces input prices w = $30/hr and r =…

A: Given  Production function: f(L,K)=16min(3L,2K)           ... (1) w= $30/hr r=$10/hr We have to…

Q: firm has a Cobb-Douglas production function q = f(K, L) = KαL 1−α and faces wages, w, and rental…

A: Answer- "Thank you for submitting the question.But, we are authorized to solve only 3 subparts .For,…

Q: An increase in the firm's cost of a fixed input will in the long-run, cause the

A: An increase in the firm's cost of a fixed input will increase the fixed cost of firm. An increase in…

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: Suppose a firm with a production function given by Q = K0.4L0.6 produces 100 units of output. The…

A: The production function is as follows:- Q = K0.4L0.6 Production to be done is 100 units. Thus,…

Q: Explain what a production function is, and state the production function for a cocoa producer. b.…

A: Answer a. The relationship between the quantity of productive inputs (such as labour and capital)…

Q: Companies can typically maximize their profits by operating at the minimum average total cost…

A: The answer to above is false.

Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…

A: please find the answer below.

Q: 3. The Cobb-Douglas production function F(x) = 0.2ln(x1) + 0.8ln(x2) is subject to dimin- ishing…

A:

Q: In the short run, behavior of production is explained by Select one: a. The law of diminishing…

A: There are two kinds of periods faced by a business company based on the variability of its…

Q: Explain the relationship between the production function and the average costs and marginal costs…

A: Answer: Production function/Total product: production function shows the relationship between output…

Q: Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise…

A: The minimum cost impact of output changes for a specific plant size is referred to as a short-run…

Q: onsider a production function Q = (K1/2) + (L1/2) + (M1/2) where L, K, M represent labor, capital,…

A: Given Production function Q = (K1/2) + (L1/2) + (M1/2) Price of L, K, M are 1,1,and 1 Q=12

Q: The ATC of a Firm is 25 when its output level is 21. The marginal cost producing the next unit is…

A: Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.

Q: A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of…

A: Returns to scale state the effect on the output level due to the increase in the production inputs.

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.