What is the difference between economies of scope and scale. Also include in your discussion some benefits of each as well as specific application for of each one.
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- What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?What is the difference between economies of scale andeconomies of scope? How do firms consider these wheninvesting in processes?A Cobb-Douglass production function is estimated as logQ = 2 + 0.52logK + 0.46logL. The interpretation ofthe coefficient 0.52 is thata. 1 unit increase in K will lead to 0.52 units increase in Q.b. 1% increase in K will lead to 52% increase in Q.c. 0.52% increase in K will lead to 1% increase in Q.d. 1% increase in K will lead to 0.52% increase in Q.
- Explain the characteristics of production in the short term vs the long tem in terms of factorsof productions and diseconomies of scalePLANT OUTPUT (TONS) CAPITAL ($) LABOUR (HOURS) 1 605.3 18,891 700.2 2 566.1 19,201 651.8 3 647.1 20,655 822.9 4 523.7 15,082 650.3 5 712.3 20,300 859.0 6 487.5 16,079 613.0 7 761.6 24,194 851.3 8 442.5 11,504 655.4 9…a) SUPPOSE A FRIM PRODUCE OUTPUT USING THE PRODUCTION FUNCTION Q= 5KL .WAGE RATE FOR HIRING LABOR IS 200 AN HOUR AND COST OF USING CAPITAL IS 100 PER HOUR. FIND OUT THE OPTIMAL QUANTITIES OF LABOR(L*) AND CAPITAL(K*) TO PRODUCE 1000 UNITS OF OUTPUT? ALSO SHOW THE RESULT GRAPHICALLY AND INTERPRET .
- A production function defines the output that can be produced A. as technology changes over time. B. in a given time period if no additional inputs are hired. C. for the average firm. D. at the lowest cost, given the inputs available. E. if the firm is technically efficient. Why E is correct? Please explain every opinion for me. Thx~ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Output Y is produced according to Y = F(K, L), where K is the capital stock and Lis the number of workers. The production function F(K, L) has constant returns toscale and diminishing marginal returns to capital and labour individually. The levelof technology is assumed to be constant over time. Capital per worker is denotedby k = K/L and output per worker by y = Y/L, and the two are related according toy = f(k), where f(k) = F(k, 1) is the per-worker production function. Investment is equal to saving, which is a constant fraction s of income Y. Capitaldepreciates at rate δ and the number of workers grows at rate n. The change incapital per worker over time is ∆k = sf(k) − (δ + n)k. Consider a country that has reached its steady-state capital per worker. Then, inone year, the country suffers severe flooding that destroys part of its capital stock.Assume this is treated as a one-off event that is not expected to reoccur. explain what happens to incomeper worker in the short run and the…Inventory Costing Methods—Periodic MethodThe Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ $9 per unit 10 Purchased 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Answer Cost of Goods Sold: Answer B. Last-in, first-out: Ending Inventory Answer Cost of Goods Sold: Answer C. Weighted-average cost: Ending Inventory Answer Cost of Goods Sold Answer
- The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed: Crew size 2 3 4 5 6 7 8 9 10 11 12Fish caught (100 lbs/week) 3 6 11 19 24 28 31 33 34 34 33 b) How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?c) How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per person?d) Suppose the owner can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $150 per week. Assuming that the owner of the trawler is interested in maximizing profits, determine the optimal crew size.Please Show Each and Every Working VERY CLEARLY. There are NO multi-questions here, only just multi-PART questions which are CONNECTED to each other, and hence, Please do NOT Leave any, Thank You! Please Answer (iv)Using the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as: Q= K0.45 L0.55 Where Q = units of output; L = units of Labor; and K = units of capital What are the marginal products of Labor and Capital? Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale? Explain three significance of returns to scale in Managerial decision making
