Whenever the total factor cost function and the total value of the product function are parallel to each other, profits will be maximized. Is this statement true or false? Explain.

Q: Consider the following production function      TPL = 12L2 – 0.8L3   Determine the marginal…

A: Answer - "Thank you submitting the question .But, we are authorized to solve 3 sub parts only.For…

Q: Consider the following production function                                                     TPL…

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

Q: When the marginal product curve is downward sloping, the average product curve? 1. might be either…

A: Average product curve indicates the per unit output at each level of input variable. MP indicates…

Q: Consider the following short-run production function (where L = variable input, Q = output):Q = 6L2…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: F(L, K) = (min{L, K})^1/3 i. Calculate the marginal product for each input, and indicate whether…

A: Marginal product of labor is rise in production value for unit rise in labor. Similar for marginal…

Q: The price of factor A is GHC20 per unit and the price of factor B is GHC300.00 per unit.The marginal…

A: Answer: As per the given question price of factor A is GHC20 per unit and the price of factor B is…

Q: Question 13 Consider a firm whose cost function when both L and K are variable is shown in the…

A: Total cost: It refers to the total cost incurred while producing the commodity.Average Total cost…

Q: Consider the following production function TPL = 12L2 – 0.8L3 Determine the marginal product…

A: Definition  The production function gives the technological relationship between the factors of…

Q: An isoquant curve shows All the alternative combinations of two inputs that yield the same maximum…

A: The ‘isoquant curve’ shows all inputs that produces a specific level of output. It helps the firms…

Q: Quantity of variable input Total output Marginal product of variable input Average product of…

A: In the process of production , we usually observe the law of diminishing marginal returns. The…

Q: When average variable cost is at a minimum, Multiple Choice   marginal cost is at a maximum.   the…

A: Option D When AVC is at a minimum, APL is at maximum AVC and AP are inversely related.

Q: Given that Q = Q(K,L) = (aK" + (1 – a)L")F represents a production function, where Q is output, and…

A: We are going to find the value of expression dK/dL to answer this question.

Q: Consider the following short-run production function (where L = variable input, Q = output): Q = 6L…

A: Marginal product is the ratio of change in input to change in output. The average product is the…

Q: Suppose the hourly wage is $20 and the price of each unit of capital is $2. The price of output is…

A: A production function represents the relationship between the quantities of factors of production to…

Q: The marginal product of labor (MPL) is defined as

A: The firm would result in profit maximisation by maximising the revenue which would be earned by the…

Q: Draw a production function that exhibits diminishing marginal product of labour. Draw the associated…

A:

Q: the total product of two workers is 80 and the total product of three workers is 90, then the…

A: The given information can be summarised in the following table :- Workers TP MP AP 2 80 - 40…

Q: The marginal product of labor is the change in A) total cost from employing one more worker. B)…

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

Q: Draw a production function that exhibits diminishing marginal product of labor. Draw the associated…

A: The diminishing product of labor refers to the situation where increasing one additional labor…

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: Determine the marginal product function(MPL) Determine the average product function (APL) Find the…

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

Q: Q1-Select the true or false for the following statement also give the explanation and support your…

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

Q: The marginal cost curve intersects the minimum point of both the average total cost curve and the…

A: The following are the definitions of the terms asked in the above questions. The marginal cost is…

Q: The Marginal Rate of Technical Substitution for isoquants in a fixed-proportion production function…

A: here we can discuss about the isoquants relation with MRTS and choose the correct option below which…

Q: Find the supply function as well as the unconditional factor demand functions fo capital and labor…

A: We are going to use profit maximization method to find supply function and unconditional demand for…

Q: Given that Q = Q(K, L) = (aK" + (1– a)L")F represents a production function, where Q is output, and…

A: Since, parts a and b are solved in the question. We know: dK/dL = (α-1)/α (L/K)r-1  This is the…

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: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…

A: When the marginal product of adding a worker is a greater loss than the loss of the marginal product…

Q: When a firm experiences diminishing marginal product, what is the shape of the curve that represents…

A: The marginal product of labor is the change in the additional output because of the change in the…

Q: The production function is the   Select one: a. relationship between the quantity of inputs and…

A: In a market, there are various functions used to explain the economic relationship between market…

Q: The marginal product of the labor curve shows the change in the total product resulting from a: a.…

A: The change in output that results from using one more unit of a particular input, assuming that the…

Q: The following table describes the various least cost combinations of two inputs from various…

A: Iso quant shows the different possibil combinations of inputs that give same level of output . And…

Q: When the input price is constant, the slope of the total factor cost function will also be constant.…

A: When the input price is constant, the slope of the total factor cost function will also be constant.…

Q: If a firm's marginal product of labour is less than its average product of labour, then an increase…

A: Average product of labor is the total product divided by the quantity of labor employed.  Marginal…

Q: The Production Function assumes that the marginal product of capital is always increasing   all…

A: Production function shows the functional relationship between factors used as input and output…

Q: c) Give a formal definition of increasing, decreasing, and constant returns to sale, and determine…

A: Increasing Returns to Scale Increasing our inputs by m increases our output by more than m. Constant…

Q: Which of the following best describes the isoquants of the production function: q=0.5L+0.3K a.…

A: OPTION B - Linear and Downward Sloping q=0.5L+0.3K  Here, labor and capital are perfect substitutes.

Q: Q2) Consider the following production function…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Consider a production function with two inputs, capital (k) and labor (1), given by f(k,l) = kº + Lº…

A: (a) The cost function of the firm that employs two inputs - k & l is, C = w*l + r*k The…

Q: A mathematical expression of the relationship between inputs and outputs is referred to as…

A: Production function: - it shows the technical relationship between the factor inputs and output.

Q: Describe the difference between a diminishing marginal product of labor and a negative marginal…

A: Law of diminishing marginal product is a short run concept where some factors are fixed and some are…

Q: the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain…

A: In Economics, qualification is frequently made between the short-run and long-run. In the short-run…

Q: The short-run production function for a manufacturer of flash memory drives is shown in the table…

A: a) Average product is the output produced per unit of labor.Formula for calculating average product:

Q: Why would labor be treated as a variable cost? labor costs will decrease as the firm produces more…

A: Fixed cost refers to the cost which remains same at all levels of output. It is independent of…