short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply, causing the firm’s average variable cost of production to increase eventually. Select one: True

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: A cob Douglas production function for a firm is given as Q=4L ½K½. The firm has also established…

A: Cobb Douglas Production Function-It represents connection between its inputs( physical capital and…

Q: With the addition of the fourth unit of input, the marginal product is   Multiple Choice   10 and…

A: Marginal product is the change in total output resulting from employing an additional unit of…

Q: Which of the following statements is false?     a. The long-run average-total-cost curve does not…

A: Total cost

Q: The law of diminishing returns happens when each additional unit of a variable input results in a…

A: The law of diminishing returns is also known as law of variable proportion. It is applicable on…

Q: Margeʹs Hair Salon production function is Q = f(K, L) = K0.5L0.5 where K is the number of hair…

A: As given Production function is Q = K0.5L0.5 Return to scale of production function is determined by…

Q: If a person starts their own business, one implicit cost is the loss of a steady salary from leaving…

A: This statement is True Implicit cost is the opportunity cost of the foregone alternative which is…

Q: The long-run is a period of time long enough so that all inputs, including facility and equipment,…

A: PLEASE FIND THE ANSWER BELOW.

Q: Which of the following can we conclude when production has economies of scale? Marginal cost…

A: please find the answer below.

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: 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: Question 2 Marge's Hair Salon production function is Q=f(K, L) = K0.5 10.5 where K is the number of…

A: Production function refers to a function that shows the technological relation between the factor of…

Q: For a short run production function q=10lnL if L=2 the extra labor needed to increase output by one…

A: The production function is distinctively characterized inside the short run and over the lengthy…

Q: When marginal cost exceeds average total cost, which of the following must be true?   Question 14…

A: Costs are the expenses that a firm incurs in the form of the purchase of inputs to produce goods and…

Q: How are increasing returns to scale for a long-run production function and a downward sloping…

A: The increasing returns to scale means that the output is rising in a larger fraction than the rise…

Q: The long run is a period of time: that is too short to change the size of a firm's plant. that is…

A: The economy evaluates its production process or policy implication in two different brackets of time…

Q: Consider the following types of firms. For each one, the long-run average cost curve eventually…

A: The expenses that are being incurred for carrying out transactions of the business are known as…

Q: Which of the following relationship is correct? When marginal cost (MC) starts to increase; average…

A: MC is the slope of TC(total cost). ATC is the per unit cost of product obtained by the ratio of TC…

Q: which one is true If a firm uses 10 units of labour and 20 units of capital to produce 10 units of…

A: The marginal product of labor refers to the increase in the total output by the addition of one more…

Q: Both short-run and long-run average cost curves are likely to have a negative slope up to a given…

A: Meaning of Short-Run Cost Curves: The term short-run cost is the period under which some variable…

Q: A firm currently uses 40 units of labor (L) and 20 units of capital (K) to produce 400 units of…

A: A firm can produce output at reduced cost when it is able to make a combination of all the input…

Q: In short-run production where labor is a variable input, the relationship between marginal product…

A: We are given, Economy is in short run. Labor is the variable input. Marginal cost of production =…

Q: When the production function exhibits _________ returns to scale, the long-run average cost curve…

A: Economies of scale:   The economies of scale are the cost-benefit that the firm achieves by…

Q: production function

A: The firm produces at MRTS=w/r   MRTS=MPL/MPK =100K/100L =K/L

Q: Suppose that the Law of Diminishing Returns sets in immediately (that is, there is no range of…

A:

Q: A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of…

A: By doubling the inputs that are employed in producing the good, will not increase the variable cost…

Q: During the previous month, a firm produced 250 tablet devices at an average variable cost of $40 and…

A: Given:Average variable cost=$40 Average fixed cost=$10Total output=250 tablets

Q: You are given the following long-run cost function: TC = 200Q - 25Q2 + 1.5Q3 What level of Q will…

A: Here the firm's total cost=TC = 200Q - 25Q2 + 1.5Q3 here the total fixed cost-TFC=0 (since this is a…

Q: The economies-of-scale curve is a long-run average cost curve, because       it allows all factors…

A: Basics:- Short run:- It is a period of time in which fixed cost remains constant because all factors…

Q: Consider a short run production function q = cL+K,using L units of labour and K units of capital:…

A: Return to scale exhibits proportionate increase in productivity when there is change in all input by…

Q: Determine whether the following production functions exhibit constant, increasing, or decreasing…

A: When increase in all inputs results in same proportional increase in output, production function…

Q: A fixed input is one: Select one: a. that can never produce more or less in any period. b. that only…

A: In a broad sense, there are two types of inputs (factors) used in the production i.e. fixed input…

Q: uppose that you are the manager of a company that vaccinates human beings for biological diseases.…

A: Given: Physician costs= $500 per day (for an annual salary of about $175,000) The daily cost for the…

Q: What is correct about the relation between the production function and costs?   Question 10…

A: The correct answer is given in the second step.

Q: For the production function Q = 0.2L2  returns to scale is: a.Constant Returns to Scale…

A: Returns to scale exhibits what happen to scale of production in long run when its factor of…

Q: Consider a firm that enjoys economies of scale. • If this firm wants to produce 25% more output, it…

A: In a market, economies of scale refers to the situation when a firm is experiencing an inverse…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We are going to find the production function first to check whether these two inputs are perfect…

Q: Assume that you have the following production function and input prices in the long run: 2 2 3 2 3 3…

A: Given: The production function and input prices are: W = 8 r = 4 Firm input bundle is (8, 10) To…

Q: A firm has a production function given by Q= ALα Kβ and per unit price of capital (K) and Labour…

A: The production function of the firm is, Q = A(L^?)*(K^ꞵ)   The marginal product (MPL) of labor is,…

Q: Suppose that the production of Y uses two inputs, L and K. L can be any positive real number, while…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: According to the information below, which of the following is (are) true? Units of variable input…

A: The total cost of production is the summation of all the fixed cost as well as the variable costs in…

Q: Suppose the production function for T-shirts can be represented as q =  L0.25 K0.75. Show that the…

A: Meaning of Production Function: The term production function refers to the situation under which a…

Q: The production function for a product is given by q= 10K^(1/2)L^(1/2) where K is capital, and L is…

A: The production function is:q = 10*K0.5*L0.5The cost function (C) with two inputs capital (K) and…

Q: For its current level of production, a firm is attempting to minimize its costs. The firm has…

A: The marginal product of labor is 10 =>MPL=10 ------- The marginal product of capital is 20…

Q: Imagine your firm has the short run production function q = -0.01L3 + L2 + 50L. What is the level…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…