Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 8.5, Problem 2ST
To determine
Explain the constant returns to scale and long-run aggregate total cost (LRATV) curve.
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Show a LRAC curve that exhibits only increasing returns to scale. In the same graph draw the corresponding LRMC curve
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What is the difference between the short-run and long-run production periods? Why is it relevant to the economics analysis of firms? If different types of inputs are not as easy to adjust in a certain time period, what difference does this make to the graphs of cost curves for economic analysis?
Chapter 8 Solutions
Microeconomics
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - Prob. 3STCh. 8.2 - Prob. 4STCh. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.4 - Prob. 1STCh. 8.4 - Prob. 2STCh. 8.4 - Prob. 3ST
Ch. 8.4 - Prob. 4STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8.5 - Prob. 3STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QPCh. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNGCh. 8 - Prob. 7WNGCh. 8 - Prob. 8WNGCh. 8 - Prob. 9WNG
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Similar questions
- The aggregate production function is y=3KL. If they are 30 units of capital and 40 units of labor, what is aggregate output?arrow_forwardWhich is an example of the aggregate production function, Y = F(K, N), that exhibits constant returns to scale? Y= 2 K N Y = 3 K N Y = K/N Y= 2K + 3 Narrow_forwardWhy are the MC and MP inversely related to one another? While it is because as one increases, the other decreases, please explain the meaning behind the inverse relationship that exists between worker productivity and cost, in general.arrow_forward
- The aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of labor, what is labor productivity? Group of answer choices 250 150 60 100arrow_forwardWhat does a positive NPW mean?arrow_forwardis this an increasing/ constant/ decreasing returns to scale? explainarrow_forward
- Explain what we mean by increasing, decreasing and constant returns to scale.arrow_forwardwhat is the difference between a firm's expansion path in the short run compared to the long run?arrow_forwardConsider a Cobb-Douglas production function, Y=zKα(Nd)1−α, with 0< α <1. (a) Show that this production function exhibits constant returns to scale. (That is, show that when K becomes xK and Nd becomes xNd, Y becomes xY for x > 0. (b) What is MPN? Is it increasing or decreasing in Nd?arrow_forward
- You are given the production function: Q(K,L)=10KαLβ Does the above function exhibit increasing, decreasing or constant return to scale? Illustrate why and explain what this means.arrow_forwardWhich of the following production functions exhibits constant return to scale? A) q=KL B) q=KL0.5 C) q=K+L D) q=log(KL)arrow_forwardAssuming that the production function [Y=A(K, L, N, H)] exhibits constant returns to scale we can derive productivity in the following way A.) Y/L = A(K, 1, H, N) B.) Y/L = A(K/L, 1, H/L, N/L) C.) Y/L = AK, AL, AH, AN D.) Y/L = C+I=G=NXarrow_forward
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