A computer company produces hardware and software using the same plant and labor. The total cost of producing computer processing units H and software programs S is given by TC = aH + bS + cHS where​ a, b, and c are positive. Is this total cost function consistent with the presence of economies or diseconomies of​ scale? Is this function representative of a economies of scope or not?

Q: Marginal cost is the slope of both the average variable cost and the variable cost functions. Select…

A: Marginal cost is the change in total cost or total variable cost per unit change in output.

Q: Imagine a firm faces a short run function of C(q) = 0.66687q^3 - q^2 +6q +367.23 and a short run…

A: Average variable cost is the variable cost per unit incurred in the production. It is the part of…

Q: For the cost function C(x) 125x + 375 x+7 where C is in dollars and x is the number produced in…

A:

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: Ing fong TC = 8Q³ - 96Q² + 32Q Derive the expressions for marginal cost and average cost. What is…

A: Average cost: ‘average cost’ is the ‘total cost’ divided by the number of units of the good. It…

Q: For a production function at a given level of output in the short run, the marginal product of labor…

A: Marginal product of labor refers to the extra unit of output produced when an additional unit of…

Q: Suppose a firm's production function can be specified as Q = 10KL.This firm's cost function…

A: This can be described as a concept that shows when an individual, firm, or any entity uses an…

Q: Determine the cost change factor in the following cases and identify the types of costs in them. The…

A: Cost oa production is the monetary value incurred in the process of production on inputs . There are…

Q: You are given the following long-run cost function: TC = 150Q - 20Q2 + 1.8Q3 What level of Q will…

A: Economies of scale is where slope of long run average cost <0, while disceconomies of scale comes…

Q: Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost,…

A: Given  Cost function: C=3+q2               .....(1) Fixed cost: The cost of production which remains…

Q: i)derive the Total Cost Function, TC(q) ii) draw the Isoquant for the given level of output iii)…

A: Production function : q = 4L + 5K Input prices : w =2   , r = 4 Output level,, r = 4

Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…

A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…

Q: Which cost concept includes both explicit and implicit costs? a) Total cost b) Variable cost c)…

A: In financial matters, understanding various sorts of costs is significant for dissecting business…

Q: The most likely explanation for economies of scale is

A: Economies of scale refer to the cost advantages that a business obtains due to expansion. It's the…

Q: (a) Find the number of hours for which each cost function will give the same cost. hours (b) !f the…

A: Fron the provided data, Acme (x); 140+10x Bell (x);200+4x

Q: How do costs vary in response to changes in the quantity of a variable input? In your own words. 250…

A: In economics, the concept of costs and their relationship with the quantity of a variable input is…

Q: The total cost of producing 3 products is given by:   TC=2A+3B+4C+2ABC   1. Is the total cost…

A: The total cost (TC) function is a mathematical depiction of the total cost incurred by a firm to…

Q: I need help with this homework question For the problem in the picture: i)derive the Total Cost…

A: ISO-Quant: Iso -Quant shows different combinations of capital and labour such that each combination…

Q: A computer company produces hardware and software using the same plant and labor. The total cost of…

A: Economies of scope occur when producing multiple products together reduces the total cost, as shared…

Q: A Closer Look in the Economies of Scale   Businesses wanted to reduce their cost to the minimum…

A: Companies benefit from economies of scale when their production gets more efficient. Economies of…

Q: How could you explain the difference between economies of scope and economies of scale?

A: Economies of scope and scale are concepts that relate to the cost of production of firms.  Economies…

Q: I need help with this homework problem. For the problem in the picture: i)derive the Total Cost…

A: The production function Input price: wage for labor (w)= $8, rent r = $24 Output q=12The cost…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

Q: Consider the following production function: Y = F(K, L) = A(2K+ 3L) Does this production function…

A: A production function shows constant returns to scale when doubling all the inputs results in a…

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: Suppose that a firm’s production function is Q =10 K^(3/4)L^(1/4). The cost of a unit of labor is $1…

A: The interplay between the output that a process gives and the various inputs that go in the process…

Q: Austin's total fixed cost (TFC) is $350/month at his cupcake bakery.  Austin employs 10 workers and…

A: The amount of output produced determines the fluctuation in variable costs. Labor costs are one type…

Q: The production function is f (L, M ) = 5L1/2M 1/2, where L is the number of units of labor and M…

A: The production function is given as L is the number of labor units.M is the number of machines. The…

Q: Suppose the production function is q = 18L0.55K0.75. Determine the long-run capital-to-labor ratio…

A: Cost is minimized at a level where slope of marginal products is equal to slope of price ratio of…

Q: For the cost function 125x + 375 C(x) = x+7 where C is in dollars and x is the number produced in…

A: Here we are given the cost function. A cost function is the function of output, and it gives the…

Q: A firm's long-run total cost curve is given as: TC (q) = 1000q-30q2+q3. At what quantity is the…

A: The minimum efficient scale (MES) is the balance point at which a company can produce goods at a…

Q: A firm's production function is given by y(K, L) = 2√(KL) or 2(KL).5 (2 times the square root of the…

A: The Marginal Product of Labor (MPL) represents the change in output resulting from employing an…

Q: Total Marginal Cost (using total cost) Quantity Variable Marginal Cost Cost Cost (using variable…

A: Fixed cost of production is that portion or part of firm's costs which remains same at each level of…

Q: Which of the following is an example of an implicit cost? A) the cost of fuel and materials. B) the…

A: Implicit cost is also called opportunity cost. It is the cost that is incurred but not reported…

Q: ind the optimal amount of labour and capital that you will be using, and compute the total cost.

A: Put given Q = 200 and solve for K put that value in Cost and minimize Cost.  Find optimum values of…

Q: After running a successful pineapple business, Diddy looks for a new business venture. Now he wants…

A: Step 1: Step 2:Thank you Step 3: Step 4:

Q: Emma sells hot chocolate outside of Yankees baseball games. They have two inputs in the production…

A: Given  Production function f(x1,x2)=x11/3x21/3

Q: Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a)…

A: Production Function studies the fundamental difference between physical input and output. It is…

Q: Which of the following production function would exhibit increasing returns to scale? f(K, L) = (K +…

A: Production function shows the relationship between the inputs used and output produced. Constant…

Q: Consider the following cost function: 3 When output is 19 units, average cost is $ C=0.2q³-69²…

A: Average cost is the cost incurred from the production of a single unit of good. The producer wants…