The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production : is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Question

Microeconomics - Production FunctionA firm produces shoes using labor (L) and machinery (K) as factors of production. Its production function is Q = K1/3 * L2/3. Answer:(a) is the marginal product of labor (MPL) decreasing?b) is the average product of labor (APL) decreasing?c) what is the relationship between the average product (AP) and marginal product (MP) curves?d) what type of returns to scale does Q exhibit?

Answer 1

Question

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

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Microeconomics - Production FunctionA firm produces shoes using labor (L) and machinery (K) as factors of production. Its production function is Q = K1/3 * L2/3. Answer:(a) is the marginal product of labor (MPL) decreasing?b) is the average product of labor (APL) decreasing?c) what is the relationship between the average product (AP) and marginal product (MP) curves?d) what type of returns to scale does Q exhibit?

11- Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing? a. Long run b. All of these c. Short - run d. Mid-run

(6) If marginal product is greater than average product (a) total product must be increasing. (b) marginal product must be decreasing. (c) marginal product must be increasing. (d) average product may be increasing or decreasing.

Answer 2

Question

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

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Answer 3

Question

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

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Answer 4

Question

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

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Answer 5

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Answer 6

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 7

Chapter 7, Problem 4.10PA

A

To determine

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 8

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 9

B

To determine

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Answer 10

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Answer 11

C

To determine

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Answer 12

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Answer 13

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The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production : is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Concept explainers

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Chapter 7 Solutions

The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production : is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

Concept explainers

To Determine: The most efficient scale of production when Q= 65 is to be determined. Concept Introduction: Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine: The most efficient scale of production when Q= 75 is to be determined. Concept Introduction: Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine: The long run average cost is to be traced on the diagram. Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.

Chapter 7 Solutions

To Determine:

The most efficient scale of production when Q= 65 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The most efficient scale of production when Q= 75 is to be determined.

Concept Introduction:

Efficient scale of production: is defined as the point which is the lowest and where the firm (or plant) can produce so that the long run average costs are minimized.

To Determine:

The long run average cost is to be traced on the diagram.

Concept Introduction: The long run average cost curve is the lowest cost curve for each output level.