Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 17.2, Problem 4ST
To determine
Determine the variables that are shift factors.
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Students have asked these similar questions
An increase in the number of hours worked would
shift the production function upward
shift the production function downward
shift the production function outward
not shift the production function
Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure meals; the graph of the production function is a line that intersects the vertical axis at a positive amount; this graph is a line with positive slope and passes through the point (4,300)).
Can we say that the production function satisfies the law of decreasing marginal returns of labor?True False
The figure shows the production function of a farmer who produces grain by working certain hours each day.
Which of the following statements is correct about this production function?
a.
The slope of the production function represents the marginal rate of substitution.
b.
The ceteris paribus assumption means that the farmer becomes more productive as he works more hours.
c.
A rightward movement from B along the production function implies that the farmer has better technology.
d.
This production function exhibits economies of scale.
e.
A technological improvement would shift up the production function
Chapter 17 Solutions
Economics (MindTap Course List)
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- If the marginal product of labor is 25 and the marginal product of capital 10, what is the marginal rate of technical substitution of labor for capital?arrow_forwardGiven the production function y=(l^p+K^p)^1/p, what is the technical rate of substitution and the the returns to scale when p=0.5?arrow_forwardFor each of the production functions below, find the marginal products of both inputs, and indicate(i) whether the production function exhibits increasing, constant or decreasing returns to scale, and(ii) whether the marginal product of each input is diminishing, constant or increasing in that input. Please see the atached photo for more detailsarrow_forward
- The production function in the image uses a variable amount of labor and a fixed a mount of capital to produce output. The production function exhibits diminishing returns to labor. Is this a short-run or long-run production function? Explain.arrow_forwardExplain the consequences to the farmer if the production function for milk were a linear function of the amount of feed fed to each cow.arrow_forwardPlease refer to the table attached. The number of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, consider the following production function identifying the relationship between output and labor input. You may assume that capital is fixed at 10 units. Answer all of the question. Calculate APL and MPL. Graph APL and MPL. Do they have the expected shape? On your graph, identify the three stages of production.arrow_forward
- F(L, K) = LK^3 and F(L,K) = L+3K for each of these production functions: a) draw the corresponding graph b) calculate the marginal product of labor and capital c) discuss if each marginal product is diminishing, constant or increasing d) calculate the marginal rate of technical substitution e) calculate if the function exhibits constant, increasing, or diminishing returns to scalearrow_forwardConsider the following production function: f (A, B) = gamma multiply A^alpha multiply B^Beta. where A and B are the inputs and alpha, Beta, gamma are in the set (0,1). Let wA and wB the price of the two inputs. Assume wA, wB > 0. Is the production function separable?Does the production function exhibit constant returns of scale?Compute the cost function and the conditional input demand function.How do these three functions react to a change in wA? Suppose the price of both inputs double, what happens to the conditional input demand function? And to the cost function? Suppose the desired level of output double, what happens to the conditional input demand function? And to the cost function?…arrow_forwardWhich of the following statements best describes a production function? Group of answer choices all levels of inputs that could produce a given level of output the maximum profit generated from given levels of inputs the maximum level of output generated from given levels of inputs all levels of output that can be generated from given levels of inputsarrow_forward
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