A 15 per cent increase in all inputs leads to only a 5 per cent increase in the output. Are the returns to scale increasing, constant or diminishing? Illustrate your answer

Q: Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If…

A: For the constant return to scale production technology, the average cost of production remains the…

Q: 4. Select the production function with increasing returns to scale: A. q = (L+ 1)K B. q = (VI + VR)²…

A: To get which function has what type of scale we will scaled up the factors of production by 2 to…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: Carry out the following tasks to illustrate the law of diminishing returns: i. Deduce a production…

A: The production function determines all the input bundles that produce the same output level.The…

Q: Which of the following production functions demonstrates constant returns to scale? I. Q=5L+2K II.…

A: Constant returns to scale condition.Q(λK,λL)=λQ(K,L)

Q: CAPITAL 10 15 LABOR O 0 0 0 1 20 20.7 20.5 2 38 39.3 40 3 54 57 58.5 4 68 73 76 5 80 87.3 92.5 6 90…

A: Introduction Its answer is It has decreasing returns to scale at all level of capital. Table of…

Q: Which of the following production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given:  There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: (a) Suppose we have the following production function: Q = K²/³12/3. Does the technology have…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

Q: What are economies and diseconomies of scale? How do they arise? What do they imply for the shape of…

A: Long run average cost is the lower cost for the production of every unit. It comprises several short…

Q: Does this production function exhibit constant returns to scale? Using the marginal products you…

A: To evaluate if the production function displays consistent returns to scale, we must first see if…

Q: A firm faces the production function: q=10L^0.32 K^0.56  (a) What kind of returns to scale does…

A:

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: "When the total cost of production decrease, we can say that the firm faces positive return to…

A: The firm would result in the production of the various goods and services which would involve the…

Q: hi  Suppose you build bird houses. One day, you double the time you spend building and double the…

A: Consider the definition of returns to scale. When we change all factors of production by a certain…

Q: 1. For each of the following production functions, determine whether there are increasing, constant…

A: Returns to scale shows the proportional change in the output when the inputs are changed by a…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

A:

Q: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Returns to scale can be classified into three categories; 1- Increasing returns to scale (IRS) 2-…

Q: 12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1,…

A: Answer - Need to find- Which production function shows decreasing return scale  1. Answer - f(x) =…

Q: en the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a)…

A: The production function shows the relationship between the output and inputs. q = 10KLThe output is…

Q: Which of the following production functions exhibits constant return to scale?

A: The production function exhibits constant returns to scale when there is a proportionate change in…

Q: Discuss the main feature behind the long run average cost curve in terms of usage of input.

A: In the long run , all factors are variable and nothing is fixed.The long-run average cost curve…

Q: What is the distinction between the laws and of returns and the returns to scale?

A:

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.