The production function f(L, K) =50k0.25 L0.75 exhibits increasing returns to scale. decreasing returns to scale. increasing, then diminishing returns to scale. constant returns to scale. negative returns to scale.

Q: Calvin’s Furniture store also has a Production function of TP = 90K2 − K3 1. Optimize the Marginal…

A: TP=Q=90K2-K3     where Q= Total Quantity of production, capital =90 which is fixed and Labour= K…

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: Order the following components of a long run average cost curve as output expands based on which…

A: In the long-run, an average cost curve shows different phases of production when average cost…

Q: Determine the returns to scale implied by each of the production function. Q = 0.4Y1/2 +…

A: Q (Y,A,B) = 0.4Y1/2 + 0.3A1/4B1/4 + 2.0B1/2 To determine the returns to scale, we will multiply Y,…

Q: onsider the following production function: Q = 2K + 6L where K represents Capital, L represents…

A: Production function shows the different combinations of inputs that a firm uses in order to produce…

Q: If a firm is experiencing economies of scale, doubling inputs will: double output. more than double…

A: Economies of Scale: The economies of the scale refer to the gain that arises due to the increase in…

Q: A firm has the following production function: q = KL, where q is output, K is capital and L is…

A: A firm has production function: q = KL,  The price of a unit of capital is $1,000  The price of a…

Q: Which of the following is NOT an assumption of the production function?   Labor used in production…

A: A production function is a unique relationship between inputs and outputs that shows the maximum…

Q: Suppose a short-run production function is described as Q=30L-0.05L^2 Where L is the number of…

A: Given: Q=30L-0.05L^2 We know, MPL = dQ/dL Therefore, dQ/dL = 30 - L  So, MPL= 30-L = 0 L=30 units

Q: Over the positively sloped portion of the short-run average cost curve, the effect of productivity…

A: In the short-run , the average cost curve is the sum of total variable cost and total fixed cost.…

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: The long run is a period of time, or a time frame, in which        all resources are fixed.…

A: A long run in the economics is the time when the manufacturers and producers have the flexibility of…

Q: Explain the three types of returns to scale with Cobb-Douglas production function.

A:

Q: rising with output increase Long Run Average Total Costs are decreasing with output increase  Long…

A: Increasing returns to scale occurs when the output tends to increase in a greater proportion as…

Q: If producing more output increases average cost then         a)there are diseconomies of scale.…

A: Answer to the question is as :

Q: • Consider a production function f(r1, 12) = min{r1, 12}: When r1 < r2, please calculate the…

A: the marginal product or marginal physical productivity of an input is the change in output resulting…

Q: The production function y =2( K0.3 L0.2 ) exhibits constant returns to scale.

A: Production function shows relationship between output produced and inputs used in the production.

Q: When a firm doubles its inputs and finds that its output has more than doubled, this is known as а.…

A: Inputs and output are important for business. Inputs are raw materials, equipment, and machinery…

Q: Determine the returns to scale of this production function: F (x1, x2) = [xỉ + x]\/2 A. Constant…

A: If change in inputs changes output by an equal proportion, production function has constant returns…

Q: ) The short run is a time period in which: (a) all resources are fixed.…

A: In economics, we study the interaction and the decision-making of the economic agents at the…

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: The Diseconomies of scale are the consequence that occurs because of bureaucratic red tape,…

Q: Given a production function with a specific amount of fixed resources and one variable resource,…

A: The total product refers to the total output produced by the firm with the given resources and…

Q: If the production function is f(x1,x2) = x1,x2. a. Show whether this production function exhibits…

A: a.  The production function is f(x1,x2) = x1.x2 f(x1,x2) = x1.x2f(λx1,λx2) = λx1 λx2f(λx1,λx2)…

Q: Q) The production function       Q = L1/2K   exhibits: Group of answer choices a) Increasing…

A: Given  Production function  Q= L1/2K       .......... (1) To know the return to scale, we increase…

Q: Consider several production functions below and indicate whether they exhibit constant, increasing…

A: The markets are the place where the buyers of various goods and services tend to interact and meet…

Q: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

Q: verage fixed cost (AFC) A) rises as output rises. B) rises as output falls. C) falls as output…

A: Average fixed cost (AFC): - it is the per-unit fixed cost or we can say the average value of fixed…

Q: Fixed costs are associated with Multiple Choice   highly adjustable inputs such as labor.   both…

A: Fixed costs are costs that does not change with increase or decrease in production/sales. They are…

Q: firm aims at minimizing its cost. Which of the following statement is TI A. The firm's technology…

A: In economics, market structure describes how enterprises are distinguished and classified depending…

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: Discuss the main feature behind the long run average cost curve in terms of usage of input.

A: In the long run , all factors are variable and nothing is fixed.The long-run average cost curve…

Q: 71. Diminishing returns can be caused by: the physical limitations of variable inputs the physical…

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

Q: What kind of returns to scale does this production function exhibit? f(z1, za) = z1(z2 - 8) for 21 >…

A: f(z1,z2) = z1(z2-8) z1&gt;0 z2&gt;8

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

A: We have Linear Isoquant, a*L+ b*K = QWhen L=0 and K = 10, Q = 100a(0) + b(10) = 100b = 10;Therefore,…

Q: A firm produces quantity Q of breakfast cereal using Labour L and material M with the production…

A: A firm has constant returns to scale when change in inputs is equally proportional to change in…

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: what is the minimum cost of producing 1000 units of output?

A:

Q: The downward-sloping segment of the long-run average cost curve corresponds to *…

A: In production activity, time period under consideration determines the nature of costs faced by the…

Q: Original per unit cost of a hat New cost after the price decrease in labour if insufficient time to…

A: Originally 10 hats are produced using 16 capital and 7 labour. cost of capital = $10  cost of…

Q: The short run is the time frame A) during which the quantities of all resources are fixed. B) during…

A: Production takes place in the short run while all planning is done in the long run.

Q: When a firm triples its inputs and finds that its output has less than tripled this is known as:…

A: Production function is a definite mathematical relation between factor inputs and output generated,…

Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…

A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…

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 =&gt;MPL=10 ------- The marginal product of capital is 20…

Q: A firm’s production function is - y = f(X1, X2)= X11/2 + X1X2 , Where X1≥0, X2≥0 1. Find its…

A: The returns of scale are of three types 1. Increasing returns of scale 2. Constant returns of scale…

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.…