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

Q: Given the production function q = 1.37LK, what is the marginal product of labor? A) 1.37 B) 0 C)…

A: Marginal product of labor is the additional output produced by employing an additional worker

Q: Given the Equation: Q = K^.50OL^.50 If the function is F(25,49), What is the maximum quantity of…

A: Production means raw material is converted into finished goods. It means various inputs are used…

Q: Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: When a firm is using a technically efficient input combination, the firm is also producing in an…

A: False statement

Q: Ing fong TC = 8Q³ - 96Q² + 32Q Derive the expressions for marginal cost and average cost. What is…

A: Average cost: ‘average cost’ is the ‘total cost’ divided by the number of units of the good. It…

Q: Which is NOTa cause of shift in cost curves of a firm?

A: To find : Which is not cause of shift in cost curves of a firm.

Q: A firm has the following production function: f(x) = ax? – bx³, where x is the only input, a=2 and…

A: The production function is the maximum output that can be produced with the given technology and the…

Q: e le öf inputs.

A: Aggregate supply curve is defined differently according to different economists. The classical…

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: 20.Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total…

A: Given: TC=200+3Q+2Q2 Level of production (Q)=20

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: For the total cost function TC (a) = - 30q² + 800q, find the minimum marginal and average cost. Show…

A:

Q: Write T if the statement is True, and F if otherwise. 1. Isocost curves show the cost of the firm in…

A: An Iscost curve is a curve that implies a combination of inputs that a firm can buy to produce a…

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: For the production function Q(K, L)= K0.25 0.75 the marginal product of labor is: 0.25K- OK.25 -0.25…

A: The marginal product refers to the change in the total product when one additional unit of variable…

Q: Its urgent hand write asap

A: A function establishes the relationship between one input and one output, or between numerous inputs…

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: 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: Consider the following information about the input choices and prices, produci the same output in…

A: Cost minimization refers to optimal usage of factors of production such that for production of a…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false?

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

Q: If a firm's production function is given by Q = 700Le -0.02L, %3D find the value of L that maximizes…

A: The firm's production shows the maximum amount of output a firm can produce by using the different…

Q: The table below indicates that the total variable cost of producing 150 units of the output is 200.…

A:

Q: Consider a beekeeper. The beekeeper has the following production function where the input is the…

A: Table shows the quantity of honey and quantity of apples manufactured at each number of beehives –…

Q: As the marginal physical product of a variable input increases, the marginal cost decreases. a.…

A: The cost of one additional unit of output is known as marginal cost. The concept is used to…

Q: Consider the production function Q = 10KL. Will the MRTS for this production function remain…

A: Here,  Q = 10KL And, MRTS which is marginal rate of technical substitution is defined as the the…

Q: Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90.

A:

Q: A bottling company uses two inputs to produce bottles of the soft drink Sludge: bottling machines…

A: Following is the given information:

Q: Cost to be incurred even in the absence of production is reflected on Variable Input. O True O False

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

Q: An is a collection of input bundles that yield the same output level

A: An Isoquant is a collection of the input bindles that yield the same output level

Q: Find the attached file.

A: Fixed cost is the cost which does not vary with the change in the output. Marginal cost is the…

Q: As a firm increases its output, we expect marginal cost to Increase. Decrease. Remain the same.…

A: Marginal cost is the additional cost incurred to produce an additional unit of output.

Q: Consider a beekeeper. The beekeeper has the following production function where the input is the…

A: Hi Student, Thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Given the production function Q = 0.5K² – 2KL + L². Find the marginal product of labor and cal.

A: Marginal productivity of labor measures the additional unit of output produced by employing an…

Q: A small clothing manufacturer employs a production method that is approximated by the following…

A: The production function shows the relationship between the output and inputs. In other words, it…

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: Consider the production function of the firm below. Which of the following is NOT true? The marginal…

A: The marginal product of labor at B is 70 units – It is true (70-0)The total product is increasing as…

Q: A firm produces plastic bins using labor (measured in man-hours) and capital (measured in…

A: Cost minimizing input combination is achieved when marginal rate of technical substitution is equal…

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: las Production function: Q 20KL The price of one unit of capital per hour is $20 and the price of r…

A: *Answer:  To find the optimal quantity of K (capital) and L (labour), the profit maximising…

Q: b. If input prices are w = 40 and r = 10, find the combination of inputs that will allow the firm to…

A: We have input price ratio = w/r = 40/10 = 4 and required to produce q =600 units

Q: An electronics plant’s production function is Q = 5LK, where Q is its output rate, L is the amount…

A:

Q: Consider the following short run production information: Marginal Product Average Product of Labor…

A: Marginal product = Change in total output/change in input

Q: Suppose that a firm’s production function is Q = 2L0.5 + 3K0.5. The cost of a unit of labour is R2…

A: Given  Production function  Q=2L0.5 +3K0.5     ........ (1) cost of labor w= 2 Cost of capital r= 1…

Q: ne that it costs a company approximately C(x) = 400,000 + 160x + 0.002x2 s to manufacture x…

A: When MC<AC, then AC is decreasing When MC=AC, then AC is constant or say at minimum When…

Q: The "Sad Student" Company finds that it costs a total of C(q) = 9720 +500q – 1.5q² +0.005q Dollars…

A: The total cost function is the minimum total cost borne by a firm for any given level of output (q)…

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.