y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1 is 12, and the price of factor 2 is 3, find the cost minimizing input combinations and the total cost of producing 40 units of output.

Q: The law of diminishing returns happens when each additional unit of a variable input results in a…

A: The law of diminishing returns is also known as law of variable proportion. It is applicable on…

Q: For the firm whose production function and costs are specified in the table, which of the following…

A: Here the incorrect is “from 250 units of output through 430 units marginal product is rising so the…

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: The maximum possible weekly average product of labor in the plant is

A: Formula for average product/output: Average product = Total product / Number of worker

Q: ) Lines that represent bundles of inputs that cost the same total amount are called: Ototal cost…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

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: 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: Whenever the total factor cost function and the total value of the product function are parallel to…

A: In the market, total cost curve depicts the amount of money used by the firm to make production…

Q: When the marginal product is greater than the average product, the average product is . .. . .. ..…

A: In a market when a firm produces output using variable inputs, there is a connection between total…

Q: "Whenever a number which is less than the previous average of a total is added to that total, the…

A: In a market, it can be seen that the different cost curves are directly or indirectly related to…

Q: The least-cost input combination is and for a total cost of On the preceding graph, use the green…

A: The isoquant curve shows the combination of two factors of production that produces the same amount…

Q: When the marginal product of labor diminishes average fixed cost rises average variable cost is…

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

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

Q: Isoquants are normally drawn with a convex shape because inputs are a) Not perfectly substitutable…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Cost functions are derived from

A: # Cost function is a representation which helps in predicting the cost of good or service with…

Q: When the marginal cost curve lies below the average total cost curve, it is true that as output…

A: Answer to the question is as follows:

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y = x1ax2b x2b = y / (x1a) x2 = [y / (x1a)](1/b)

Q: À firm minimizes its production costs, subject to a given output level, at that point where a. the…

A: d. an isoquant is tangent to the isocost curve

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

A: The diminishing returns occurs in the short run. All factor of production are not variable in the…

Q: Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero.…

A: So  FC=$6 VC=7×$10       =$70

Q: Consider a production firm whose production function has the isoquant shown in the following graph.…

A: Given is the graph of the production firm's isoquant. The isoquant is a downward sloping curve in…

Q: a producer faces a fixed cost Rs 50 and a variable cost of RS 5 per unit of output when he produces…

A: Answer: Given, Fixed cost = Rs 50 Variable cost = Rs 5 per unit of output (for output level below…

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: A business incurs the following costs: • Labor: $120/unit • Materials: $45/unit • Rent:…

A: Total fixed costs are the costs that are unavoidable and have to paid irrespective of the level of…

Q: Explain economies of scale and how to determine if a firm is experiencing it or not from their cost…

A: In a market, economies of scale is considered as one of the competitive advantage of a firm.

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

A: Production is the process in which the inputs are used to produce output. There are different inputs…

Q: Explain the following statement by using a graphical analysis: “Shape of the short-run cost curves…

A: The shape of the short-run total cost (TC) curve is cubic and that of the average cost (AC) curve is…

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: true or false The closer an isoquant is to a straight line, the closer the inputs are to being…

A: An isoquant refers to a line that shows all the input combinations that yield the same level of…

Q: In a production process, an excessive amount of the variable input relative to the fixed input is…

A: Short-run production: Under the short-run production, there are both factor inputs i.e. Fixed and…

Q: The economies-of-scale curve is a long-run average cost curve, because       it allows all factors…

A: Basics:- Short run:- It is a period of time in which fixed cost remains constant because all factors…

Q: A moving company requires one van and two workers in one hour to do one task. If labour cost is…

A: Labor Cost = 20 / hour  Van Cost = 40 / hour  Number of tasks to be completed = 20  Labor required…

Q: Suppose isoquant curves are smooth and bend in towards the origin and the cost minimization point is…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Which of the following is considered an implicit cost? PLEASE EXPLAIN.   A. Use of your labor…

A: Implicit Cost is self owned cost not need to pay to other or a cost has already occurred not…

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: Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain…

A: The whole cost of producing a product may be included in a company's financial records as the cost…

Q: Discuss the main feature behind the long run average cost curve in terms of usage of input.

A: In the long run , all factors are variable and nothing is fixed.The long-run average cost curve…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We have Linear Isoquant, a*L+ b*K = QWhen L=0 and K = 10, Q = 100a(0) + b(10) = 100b = 10;Therefore,…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We are going to find the production function first to check whether these two inputs are perfect…

Q: Šuppose that a producer is faced with input combinations that yield 500 units. Assume that capital…

A: Optimal input combination is where Isocost line is tangent to Isoquant curve.

Q: Consider a firm that produces cars with the following production function: q = min(ak, bL) a. Find…

A: The given production function is a fixed proportions production function as the inputs K and L are…

Q: Which of the following statements are true if Isoquants can be convex, linear, or L-shaped?…

A:

Q: Which of the following statements is true? Group of answer choices If the marginal product of labor…

A: According to the law of diminishing returns as more units of the variable input labor is used with a…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: The isoquant would result in the downward sloping curve which would result in various combinations…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: The Long-run average cost curve is defined as a curve which portrays a firms lowest cost per unit at…

Q: Q1. In the theory of production, diminishing marginal returns to labour holds in the short run…

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

Q: Draw the isoquant map, be precise for at least one isoquant line, carefully determine the gaps…

A: A production function of a firm represents the relationship between the output and input factors…

Q: The vertical distance between the average total cost curve and the average variable cost curve: (a)…

A: Cost of production are the amount of dollars incurred by the business company on its commodities and…