Answered: A firm has the production function q =…

A firm has the production function q = f(L, K) = min{L¹/2, K1/2). This firm has: increasing returns to scale decreasing returns to scale None of the above constant returns to scale

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 15SQ

See similar textbooks

Related questions

Q: A firm has the production function q = f(L, K) = min{L2, K2}. This firm has: increasing returns to…

A: The question is what magnitude that production function returns to the firm under consideration. The…

Q: A firm has the production function q = f(L, K) = L0.5+ K0.5 This firm has: O increasing returns to…

A: The production function exhibits increasing returns to scale if the increase in input by 'm' times…

Q: For the production function: Q = 12LK , what happens to average cost as the firm produces more? A.…

A: Given, By putting this value of K in production function:

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: True or False. Please explain The production function f(x1,x2,x3) = (min{0.5x1;0.75x2 })0.5 ·x30.5…

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: eturns to scale

A: Option (A). Q = 5L2 + 4K3/2L When both inputs are doubled, new production function is Q* = 5 x (2L)2…

Q: The production function in the economy is given as Y = F(K,N) and has constant %3D returns to scale.…

A: Solution: a) Return to scale: It refers to the relationship between inputs and outputs. When total…

Q: The production function f(L, K) =50k0.25 L0.75 exhibits increasing returns to scale. decreasing…

A: In economics, returns to scale measures the proportionality of change in output when the inputs are…

Q: A firm has a production function f(x, y) = 1.80(x0.10 + y0.10)2 whenever x > 0 and y > 0. When…

A: The objective of the question is to determine the returns to scale of the firm's production…

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

Q: Your firm is producing a unique product and the marginal product with respect to x1 in your function…

A: Law of diminishing marginal returns says that when one additional unit of any one of the factors of…

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: onsider a short run production function q = cL+K where the value for c =: sing L units of labour and…

A: Returns to scale measures the proportionate change in output if all inputs are changed by the same…

Q: A firm has the production function f(x, y) = x³yº.3, where a>0.7. This firm has Select one: O a.…

A: Given Production function : f(x,y) = x^a × y^0.3 , where a>0.7. To check whether it has what…

Q: a= min[x,y]^(1/2) a)Draw isoquants for a = 1, a = 4 and a = 9. b)What kind of returns to scale does…

A: Production refers to the process of using inputs to make useful output. The functional relationship…

Q: If the production function is f(x1,x2) = x1,x2. a. Show whether this production function exhibits…

A: a. The production function is f(x1,x2) = x1.x2 f(x1,x2) = x1.x2f(λx1,λx2) = λx1 λx2f(λx1,λx2)…

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: 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: If a production function exhibits decreasing returns to scale, then the average variable costs are…

A: ANSWER STEP-1 If A Production Function Exhibits Decreasing Returns To Scale, Then The Average…

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: 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: For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale…

A: Returns to scale exhibits what happen to scale of production in long run when its factor of…

Q: If a firm has the production function q = f(L, K) = L + 2K, then its technology exhibits:…

A: The production function shows the relationship with the input used and output produced. There is…

Q: Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale.…

A: According to the question, C(x) = ½ X^2 AV(x) = C(x)/x = ½ x MC(x) = C’(x) =x

Q: Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a)…

A: Returns to scale refers to how production of a good changes when units of both inputs change.

Q: Identify the returns to scale in the functions below. Production Function a. q 3L + 2K Returns to…

A: The production function shows the relationship with the input used and output produced.There is…

Q: A farm producing wheat has the following production function Q = 4L + 3K. Does the above function…

A: Given, Q=4L+3K Production function shows the technical association between the input and output. It…

Question

A firm has the production function q = f(L, K) = min{L¹/2, K1¹/2}. This firm has:
increasing returns to scale
decreasing returns to scale
O None of the above
O constant returns to scale

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Final Answer

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
The figure to the right illustrates the long-run average cost curve for a company that makes motors. Suppose the company produces & thousand moters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 theusand motors, then it experiences Average total cont 45.00 44.00 40 00 36.00 32.00 28.00 24.00 20.00 16.00 12:00 5.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000)
Cost curves Egidio Binaccio designed an ancestry app that allows people to connect with long lost Italian relatives. Egidio notices the following relationship between the number of hours he schedules and the number of downloads (sales) he gets. Below is a production function, for Egidios current company set up. NUMBER of LABOUR DOWNLOADS HOURS B) 10 C) 20 30 40 50 60 70 80 90 100 110 120 130 140 6.50 11.00 14.50 17.50 20.50 23.75 27.50 32.00 37.50 44.50 53.50 65.00 79.50 97.50 TVC TC MC AVC Suppose the firm can hire all the labour it would ever want at the going wage of $8 per labour-hour. The firm's total fixed costs are $64 per day. A) ATC Fill in the table showing total variable cost (TVC), total cost (TC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). [Remember: Marginal cost should be entered midway between rows of output.] On a graph with DOWNLOADS (per day) on the horizontal axis, draw the three "per-unit" cost curves, AVC, ATC, and MC. [Note…
For a firm, constant returns to scale occur when the for the firm i AFC ATC MC as the quantity produced increases.
Please answer all parts get like please Hand written not allowed.
Can a firm have diseconomies of scale, econmies of scale and constant returns to scale
How would the scale economies determine the shape of the long run Average cost curve(LAC) What are the practical Reaseons that contribute for Scale Econoimies? Expalin using illustration
For the production function: Q = 12LK , what happens to average cost as the firm produces more? A. Increases B. Stays constant C. Decreases
Suppose that the production function of a chip manufacturer is O- KL'-L. If L-100 and K- 200, then A) MP, =1,245 B) MP-10,000 C) MP, 6,545 D) MP, - 250 E) MP, - 20,000
As Big Jake Lumber expands, the cost of shipping the lumber drops sharply. This is an example of achieving of scale. O economies O diseconomies O constant returns O varlable costs