4. A two-output-two-input firm has a transformation function of the type:91 + 92 = z4z4.where q and q are outputs and z and 2z are inputs.(a) Is this production function consistent with non-increasing returns to scale? Explain why or why not.(b) Fix z = l and z, = 1. Draw the transformation function between g and q2.(c) Fix q = = 1. Draw the transformation function (isoquant) for inputs z, and z2.(d) Find profit maximising z1. z2.91.92 at prices equal to: Pi = 1, p2 = 2 and w =maximisation problem, think about your picture in (b). With a transformation frontier of this form and such prices, does the firmproduce both outputs? If not, rephrase the maximisation problem accordingly.1, wz = 2. Hint: before you set up the profit

4. A two-output-two-input firm has a transformation function of the type: 91 +92 = 21/42/4. where q, and q are outputs and z₁ and 2₂ are inputs. (a) Is this production function consistent with non-increasing returns to scale? Explain why or why not. (b) Fix 2₁ = 1 and 2₂ = 1. Draw the transformation function between ₁ and 2. (c) Fix q₁ q2 = 1. Draw the transformation function (isoquant) for inputs z₁ and 2₂. (d) Find profit maximising 21.22.91-92 at prices equal to: P₁ = 1, P2= 2 and ₁= 1, 2 = 2. Hint: before you set up the profit maximisation problem, think about your picture in (b). With a transformation frontier of this form and such prices, does the firm produce both outputs? If not, rephrase the maximisation problem accordingly.

4. A two-output-two-input firm has a transformation function of the type: 91 +92 = 21/42/4. where q, and q are outputs and z₁ and 2₂ are inputs. (a) Is this production function consistent with non-increasing returns to scale? Explain why or why not. (b) Fix 2₁ = 1 and 2₂ = 1. Draw the transformation function between ₁ and 2. (c) Fix q₁ q2 = 1. Draw the transformation function (isoquant) for inputs z₁ and 2₂. (d) Find profit maximising 21.22.91-92 at prices equal to: P₁ = 1, P2= 2 and ₁= 1, 2 = 2. Hint: before you set up the profit maximisation problem, think about your picture in (b). With a transformation frontier of this form and such prices, does the firm produce both outputs? If not, rephrase the maximisation problem accordingly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give me correct answer with proper calculation and graph otherwise i give multiple downvote and complain to bartelby Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
22. Suppose a firm has a production technology given by the Cobb-Douglas production function: Q = f(L,K) = AL¤ KB with a + ß 0, where L and K represent labour and capital respectively and A is technology. (a) Does this production function exhibit constant, increasing or decreasing returns to scale? Explain how you would be able to see this on an isoquant graph. (b) Set out the unconstrained profit maximisation problem (assuming input prices are w for labour and r for capital and the output price is p) and then solve for the unconditional input demand functions for capital and labour and find the firm's supply function (c) Now set up the cost minimisation problem and solve for the conditional labour and capital demands. What is the difference between the unconditional input demand functions from part (b) and the conditional input demand functions you have just derived? (d) Give an expression for the total cost function (no need to simplify) and explain how the average and marginal cost…
8. If a firm has a production function of the form: Q = L0.5K2, what can we conclude? (a) The firm has a quasi-concave production function and will experience constant marginal returns to labour and increasing marginal returns to capital. (b) The firm has a quasi-concave production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital. (c) The firm has a convex production function and will experience increasing marginal returns to labour and increasing marginal returns to capital. (d) The firm has a convex production function and will experience constant marginal returns to labour and increasing marginal returns to capital. (e) The firm has a linear production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital.
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Question A: Determine the production function (TP) and the marginal production function (MP) graphically as well as mathematically. Are these short run or long run production functions? Explain? Question B: What is the "Law of diminishing returns" and when does it set in for the company above? Question C: At what number of labour units (L) does the company achieve the highest possible production (Q)?
Is each of the following statements true or false? In either case, briefly justify your answer. (a) If a firm has economies of scale, then its average cost is decreasing and lower than its marginal cost. (b) A firm whose total cost function is C(Q)=Q^2+Q must have economies of scale. (c) A firm with total cost function ?(Q) = 3Q+2 must have constant returns to scale. Plz do fast asap
6. Which one of the following production functions represents an increasing returns to scale technology, where e is labour and k is capital? a) F(£,k) = e1/2 + k1/2. b) G(2,k) = {2/3k^/2. c) H(e,k) = min{{, 2k} d) I(e, k) = 3l + 2k.
Please answer in detail according to the picture. Show that the cost function is homogeneous of degree 1/(α+β) in output. How do the returns to scale (degree of homogeneity of the production function) relate to the propertiesof the cost function? Does this make sense to you? Explain clearly why.
solve this one
1. Given the production function: q = 2KL, (a) Fill in the table below which has information on the short-run production function, the marginal product of labor (MPL), and the average product of labor (APL) if capital is held fixed at 3 units in the short-run. Labor Quantity of Output (MPL) (APL) 0 1 4 9 16 25 (b) Plot the short-run production function. (c) Plot the marginal and average products of labor on a new graph. (d) Does the law of diminishing marginal returns apply? If so, at what level of labor do diminishing marginal returns set in? (e) What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL)? (f) If the amount of capital increased to 6 units, what would happen to your graphs in part C)?
Could you solve d,e,f ? Thank you
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