4.7 When to Use the Principle of Diminishing Returns? You are the manager of a firm that produces memory chips for mobile phones. In your decision about how much output to produce this week, would you use the principle of diminishing returns? Explain. In your decision about how much output to produce two years from now, would you use the principle of diminishing returns? Explain.

Q: Question: 1 A firm produces output according to the following production function: q = 10 K^1/4…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: You work for a consulting firm and have been asked to review this case: A firm increases its plant…

A: The objective of the question is to provide advice to a firm that has increased its plant size and…

Q: Question 7 The production function is f(x,x)=x¹²₁x¹2₂ a. In the short run the amount of factor 2…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Space Market Adds new Supply (landlords) Demand (tenants) Development Industry If yes Rents &…

A: The housing sector is essential in a socioeconomic context because changes in property values can…

Q: Show me the steps to solve: You will need to draw and label a graph that combines two different…

A: Here is the sample graph that illustrates the concept of economies of scale, showing the labor…

Q: = L2K2, 3. Imagine we live in a classical world. Suppose that the production function is Y where L…

A: A Production function refers to a mathematical relation or equation that shows the relationship…

Q: You work for a consulting firm and have been asked to review this case: A firm increases its plant…

A: The objective of the question is to provide advice to a firm that has increased its plant size and…

Q: uppose that the production function of a country is given by Y=K3L0.7, where Y is output, L is…

A: Production function shows the relationship between the output and inputs. The changes in the inputs…

Q: 93) Explain the difference between the short run and the long run as it relates to the firm's…

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

Q: An appliance manufacturing business requires both machines and labor to produce finished products.…

A: An isoquant curve depicts the combination of capital and labor results in the same level of output.…

Q: Assume a Cobb-Douglas production function of the form: q = 10L0 58 K0.79 What type of returns to…

A: Increasing returns to scales  are present when increasing all factors of production by t leads to…

Q: 1. Consider the Cobb-Douglas production funetion f(K,L) = cK"L*, where a, b, and e are constants…

A: Given information Cobb Douglas production f(K,L)=cKaLb  a, b and c is constant and greater than 0

Q: Per-unit cost-$

A: The average cost associated with producing or obtaining a singular unit of a particular product or…

Q: Suppose a pizza parlor has the following production costs: $2.00 in labor per pizza, $3.00 in…

A: Fixed Cost is constant at all units of output produced.  Vraiable Cost changes as the output…

Q: Suppose you decide to start your own business when you graduate with a degree in economics. At the…

A: Accounting profit=Total Revenue -explicit costEconomic profit=Total revenue - Implicit cost Implicit…

Q: Imagine that the production function for tuna cans is given by Q = 6K + 4L where, q = output of tuna…

A: Rate of technical substitution refers to the ratio of marginal product of labor to marginal product…

Q: A production function expresses the relationship between inputs, such as capital (K) and labor (L),…

A: Production function is the mathematical expression of the amount of output a system or firm produces…

Q: Consider the production process represented by the total product curve (TP'), the average product of…

A: Holding all other input constant, the final out and one variable input shows a functional relation…

Q: 1. Imagine an economy with a constant returns to scale production function. Answer the following:…

A: Constant returns to scale refers to that technology /production function in which the output changes…

Q: About 1.2 million additional advanced robots are expected to be deployed in the U.S. by 2025, Boston…

A: The first cost, anual cost, salvage value, life years for the Robot X and Robot Y is given as…

Q: Question 5 Which of the following production functions exhibit increasing return to scale?…

A: There are three types of returns to scale- Increasing returns to scale The constant return to…

Q: Question 19 Consider the following graph of a production function when capital is constant. (The…

A: The correct answer to the above-mentioned question is MPL(L1, K)>MPL(L2, K).

Q: Explain what we mean by increasing, decreasing and constant returns to scale.

A: Returns to scale is defined as the change in output due to a quantitative increase in the inputs of…

Q: On August 10, 2020, a major storm known as a derecho, hit the Midwest US (especially in Iowa,…

A: Equilibrium price and quantity are the price and quantity at which the quantity demanded by…

Q: Question 24 Consider the following production function when K is fixed. (This is a description of…

A: False, the production function does not satisfy the law of decreasing marginal returns to labor.

Q: unds of carrots. You spent $1.50 per pound on fertilizer and used 2 pounds of fertilizer. Planting…

A: Given: Production of carrots=436 pounds Cost of fertiliser= $1.50 per pound Quantity of fertiliser=2…

Q: What is correct about the relation between the production function and costs?   Question 10…

A: The correct answer is given in the second step.