The production function for soy beans is q = K 0.25 L 0.45. Dose this production function have constant, increasing or decreasing return to scale?   A. may be increasing or decreasing  B. Constant return to scale C. Decreasing return to scale D. Increasing return to scale

Q: Which of the following is true:     A. Long Run Average Total Costs are always smaller or equal…

A: The first statement is True. This is because in long run, all factors of production are variable and…

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: A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much…

A: Given: Q = F(K,L) = min {6K,2L} K=2, L=3 Therefore, Q= min(6*2,2*3) Q=min (12,6) Therefore, out of…

Q: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: Which of the following is true?

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: Specific subject: Microeconomics - Production and Costs Function  Comment on the following…

A: The cost that the firm incurs to produce one additional unit of the output is known as the marginal…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

Q: A production function with the character Decreasing Return to Scale (DRTS) means that if the…

A: 8. Decreasing return to scale (DRS) means when the production scale or production variables…

Q: Select choices which are true about Total Costs.  (Select all that apply.)   Question 38 options:…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: A 15 per cent increase in all inputs leads to only a 5 per cent increase in the output. Are the…

A: Percentage increase in input results to a less than proportionate increase in output is the known as…

Q: Average Total Cost (Dollars per bike) Number of Factories Q = 25 Q = = 50 Q = 75 Q = 100 Q = 125 Q =…

A: Quantity SRATC1 SRATC2 SRATC3 LRATC 25 130 165 200 130 50 100 120 140…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Fixed cost refers to the cost which does not change with change in the output level.

Q: Which of the following statements is true?    (a) If a firm is experiencing decreasing returns, it…

A: Production Possibility curve refers to graphical representation that shows all the combination of 2…

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: > The production function for gadgets is: Q = Q(L, G) = L½ + G½ ne price of L is w = $2. The price…

A: A production function has Diminishing returns to scale when change the inputs changes the output by…

Q: 3. Many production functions have a property called constant returns to scale, about constant…

A: In economics, the term "returns to scale" refers to the quantitative change in output that a company…

Q: Take a Cobb-Douglas production function, find its Elasticities w.r.t output and Elasticity of…

A: Cobb-Douglas production function is a function that represents how two or more inputs, mainly…

Q: Explain how the long-run average cost curves will differ between a private hospital and a soft-drink…

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

Q: If each unit of labour costs $25 and the cost of capital is fixed at $100, then the average variable…

A: Average variable cost(AVC) is the variable cost per unit.

Q: a. Is it possible to have diminishing returns to a single factor of production and constant returns…

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

Q: 1. For each of the following production functions, determine whether there areincreasing, constant…

A: A production function shows the maximum level of output that can be produced with the help of…

Q: Ouroboros’ total cost (TC) as a function of its production level q is given by the equation below:…

A: Given  Total cost TC(q)=2q2-12000q+30,000,000              ...... (1) “Since you have posted a…

Q: Your firm is producing a unique product and the marginal product with respect to x1 in your function…

A: Law of diminishing marginal returns says that when one additional unit of any one of the factors of…

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: Covmed produces an antiviral drug to treat COVID-19 as its single output. We are in the short-run,…

A: (Q) Covmed produces an antiviral drug to treat COVID-19 as its single output. We are in the…

Q: Q1. If fixed cost (FC) is $50, variable cost (VC) is $100, and output (quantity) is 3, what is…

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

Q: Optimize the Cobb-Douglas production function given the following parameters. The maximum about of…

A: (Q) Optimize the Cobb-Douglas production function given the following parameters. The maximum about…

Q: The Mini-Case "Economies of Scale at Google" describes economies of scale for Google Cloud Storage.…

A: The objective of the following assessment is to evaluate the marginal cost and average cost for the…

Q: Suppose that a firm's monthly marginal return from every dollar spend on research & development is…

A: Answer -

Q: Average Total Cost (Dollars per bike) Number of Factories Q = 100 Q = 200 Q = 300 Q = 400 Q = 500 Q…

A: Note: I am answering the 2 parts only. For the graph part, the complete information to plot the…

Q: 1. For each of the following production functions, determine whether there are increasing, constant…

A: Returns to scale shows the proportional change in the output when the inputs are changed by a…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

A:

Q: A firm produces output according to the production function:Q = F(K, L) = 4K + 8L.a. How much output…

A: a. The production function is given as follows: The value of K is given as 2 and that of L is 3.…

Q: Is each of the following statements true or false? In either case, briefly justify your answer. (a)…

A: Answer a. Economies of scale describe a condition in which the average cost reduces as the volume of…

Q: The law if diminishing marginal returns is the rate at which one input maybe substituted for another…

A: The law of diminishing marginal returns is not the rate of substitution of one input for another…

Q: For Bottlers Limited, the total cost of producing 4 water bottles is $200 and it increases to $210…

A: Given: Total cost of producing 4 water bottles = $200 Total cost of producing 5 water bottles = $210…

Q: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…

A: Introduction The scale of production in two factor production function means a given amount of labor…

Q: Suppose that production for good X is characterized by the following production function, Q =…

A: The fixed cost refers to the cost that does not change with change in the level of output.  While…

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: Assume the short run variable cost function for Japanese beer is VC=0.6q^0.8 If the fixed cost (F)…

A: Variable cost:  VC = 0.6q0.8 Fixed cost:  F = 1500 -------

Q: Which statement must be false? a)  When a firm has increasing returns to scale in production, its…

A: Increase return to scale : where production  increase proportionally same as input increased. .…

Q: A firm produces output according to a production function Q = F(K, L) = min {4K, 8L}. a. How much…

A:

Q: What is the optimization condition for economically efficient use of energy in production in the…

A: In the short run, the optimal production occurs at the following point. MR = Price of input / Price…

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.