What is the difference between a fixed input and a variable input?

Q: Dmitri's pizza restaurant uses a combination of workers and ovens to produce pizzas. The total…

A: Given  Production function: q=4K0.5L0.5            ... (1) Where q is the quantity of pizza produced…

Q: Explain how input, output and cost are interrelated

A: A business needs to make use of inputs for turning them into outputs that could finally be sold in…

Q: What is the difference between sunk cost and fixed cost? Explain with examples.

A: Sunk costs and fixed costs are two kinds of expenses borne by a corporation in the different…

Q: The isoquants for inputs that are perfect complements for one another consist of a series of:

A: The two goods can be called ‘perfect complement’ if one good can be consumed with another good.…

Q: Suppose a soap-manufacturing production process is described by the following  equation: Y = a + b…

A: The marginal product of labor measures the change in output due to change in labor. Mathematically,…

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of transformation of inputs into output by using factors of production .…

Q: What is meant by an expansion path? Illustrate expansion paths for a normal input and an inferior…

A: The expansion path may be defined as the locus of the points of tangency between the Isoquant curve…

Q: Provide a graph and an explanation to show that the production function Q = L.5K.5 has diminishing…

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

Q: for these two graphs answer the following question what is the fixed cost?

A: Cost refers to the expenditure incurred by the producer for producing a given level of output. There…

Q: Let f be a production function such that that, for a fixed k, the marginal product of labour starts…

A: In the above diagram, we can see that: At point B, when AP is maximum then AP intersects MP (AP=MP)…

Q: When do we say that a firm is operating with least cost combination of inputs?

A: The different combinations of the resources used in the production process depend on the economic…

Q: Why does the average fixed cost falls with the increase in output?

A: Fixed cost is that cost which doesn't Change in the short run as the production proceeds.  Average…

Q: When analyzing isoquants, if the marginal product of all inputs double, how would that change the…

A: Isoquants are the curve that depicts a various mix of labor (l) and capital (k) that can be used to…

Q: A firm uses the inputs of Iron and labor to produce Cars. Suppose that the quantity of labor is…

A: Marginal product is the amount by which production of a commodity changes from employing more unit…

Q: What is an isoquant? What is a marginal product? What is the technical rate of substitution? Explain…

A: Utility: The utility is the power or ability of the goods and services that satisfy the consumers…

Q: What is the total cost when the marginal product of labor is 15? What is the total variable cost…

A: The marginal product of labour can be calculated by dividing change in output by change in labor.…

Q: A production function is represented by P=f(L), where L is labour. As input L increases, the total…

A: Marginal product is the addition in total product when one more unit of variable factor is employed.…

Q: Consider a firm that produces car repairs. All inputs are fixed except the number of workers hired…

A: Marginal Product = Change in Total Product / Change in Number of Workers The marginal product of…

Q: Distinguish explicit cost and implicit cost

A: We can classify costs on the basis of payments. These are: 1-Explicit cost 2-Implicit cost…

Q: The of an input is the output per unit of the input

A: Inputs are any resources used in the production of goods and services.  Labor (workers' time), fuel,…

Q: What are a total variable cost and average variable cost?

A: Total Variable costs are those costs that change when the input changes. For example-wages, when…

Q: When the marginal product of labor is increasing marginal cost is decreasing constant increasing at…

A: The marginal cost is the cost of producing an additional one unit of output. Marginal products of…

Q: Give two examples of variable costs

A: Variable costs are those costs which vary with the production level and thus gets changed as the…

Q: Asap   A firm has the following linear production function: Q = 6K + 9L The firm currently owns…

A: Answer: Given, Production function: Q=6K+9L K = 10 units L = 30 units (A). Marginal product of…

Q: When the marginal product of labor equals the average product of labor, then a. the marginal product…

A: Marginal product is the additional output produced by employing an additional unit of input.

Q: What factors give rise to increasing returns to scale and decreasing returns to scale?

A: Increasing returns to scale means when all inputs are increased, the output is increased by more…

Q: Graph the change on the production function when a firm decreases its labour

A: Production function shows the relationship between output and number of labor employed. Change in…

Q: The average product of labour is diminishing when: The marginal product of labour is diminishing. а.…

A: The firms, and businesses tend use various factors of production, and raw materials in order to…

Q: Which average cost curves are U-shaped?

A:

Q: What is the relation between fixed cost and total cost ??

A: Fixed cost is the cost that is to occur on the fixed expenses whether there is production or not.…

Q: A farmer raises apples using land (K) and labor (L), and has an output of ? (?,?) = ? 0.5 ? 0.5…

A: given, production function as: QK,L=K0.5L0.5 where Q is the level of output K is the level of…

Q: A firm that employs labor and capital has production function q = LK. What returns to scale does the…

A: Q=LK the above production function exhibits q=lk where, Q= quantity of output L= Amount of labor K=…

Q: Does the MRTS of the production functions Q=L,K decrease? In this case, does the marginal product of…

A: Answer -

Q: What is the distinction between the laws and of returns and the returns to scale?

A:

Q: What would happen to output if one input would increase and the other would not?

A: Answer: Introduction: Production involves many inputs such as land labor, and capital, etc. In the…

Q: Briefly explain what is meant by the term "variable costs" and provide three examples of same.

A: Total cost of production has two parts- fixed cost, which remains fixed along the production and…

Q: What is the average product of labor, given that the level of labor equals 15, total output…

A: Labor are the people who work in the business organization and get salaries/wages in return. Labor…

Q: Explain how a change in the price of one input factor changes a firm’s long-run expansion path?

A: The firms, and businesses are the entities who are considered to be of utmost importance for the…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.