A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on thecountry's production function?Select one:O a. shift outwardsO b. movement upwards along the same curveO c. shift inwardsO d. movement downward along the same curveO e. remain unchanged Suppose that smoking creates a negative externality. If the government does not interfere in the cigarettemarket, thenSelect one:O a. the equilibrium quantity of cigarettes smoked will be less than the socially optimalquantity of cigarettes smoked.O b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimalquantity of cigarettes smoked.O .There is not enough information to answer the question.O d. the equilibrium quantity of cigarettes smoked will equal the socially optimal quantity ofcigarettes smoked.

Negative externality is a negative spillover effect on the third party or society because of the…

A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on the country's production function? Select one: O a. shift outwards O b. movement upwards along the same curve O . shift inwards O d. movement downward along the same curve O e. remain unchanged

A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on the country's production function? Select one: O a. shift outwards O b. movement upwards along the same curve O . shift inwards O d. movement downward along the same curve O e. remain unchanged

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The figure to the right illustrates a series of isoquants. Which of the following statements is…

A: Isoquants are contour lines, similar to indifference curves, which show the combination of inputs…

Q: 4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. OB. In…

A: Economies of scale is when the increase in output decreases the long run average cost. Diseconomies…

Q: Elaborate the "“concept of homogeneity and Returns to Scale. Mathematically prove the following…

A: Note: Since the original question has more than three subparts, we are going to answer first three…

Q: Suppose a huge scientific breakthrough doubles the output that an additional houra huge scientific…

A: Production function:Production function depicts the relationship between the total output produced…

Q: 2018 2019 $200,000 30,000 35,000 5,000 2,000 $220,000 40,000 45,000 6,000 3,000 Sales Labour Raw…

A: a) This formula is comprised of the proportion of absolute yield to a piece of solitary…

Q: QUESTION 13 A negative productivity shock O A. always decreases the amount of output for a given…

A: Output is produced using different inputs of production such labor, capital and land.

Q: Output K Which of the following could cause the upward shift of the production function? O a) an…

A: Production function shows the functional relationship between inputs and outputs that are used in…

Q: Apple Watch retailed for $399 in 2020, and firm was predicted to sell millions of units. The firm's…

A: Here, it is given that the Apple watch is sold for $3999 in 2020 with the firm's total cost of input…

Q: The following three kinds of technological change intue OA larger K. improved inputs, and new…

A: In long run, the technology will brings changes to production process, along with efficiency of…

Q: [MUST SHOW WORK] Tina decides to open her own salon. She uses her savings of $20,000 to invest in…

A: Implicit cost refers to foregone income if resources were invested elsewhere.

Q: a When he gets the opportunity to do so, Faizan increases the amount of capital his workers have…

A: The production function consists the combinations of inputs that can give maximum production. The…

Q: 1. You collect the following production data for your firm: L Q 301 2 1,436 6 632 3 69 1 1,813 9…

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

Q: Units of Units of Labor, L Capital, K 1 2 3 4 1 50.0 66.7 75.5 80.0 2 66.7 100.0 120.0 133.3 3 120.0…

A: Answer: option c (long-run; can both be varied) Explanation: In the long run, both labor and capital…

Q: Historically, the term while the term applies to the reduced direct-labor requirement per unit of…

A: Production economics is a subfield of economics that studies how assets are effectively allotted and…

Q: In Figure 3 below, what has caused production to increase from output level Q1 to output level Q2?…

A: An isoquant curve is a graphical representation in microeconomics that depicts all the possible…

Q: 4. Explain the idea of the macroeconomic production function to someone who knows no economics. The…

A: Since you have posted multiple independent questions, according to the guidelines, only the first…

Q: If all inputs triple and output increases by less than three times the original amount of output,…

A: Returns to scale is a concept that describes the relationship between changes in the scale of…

Q: Define constant, decreasing and increasing returns to scale.

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

Q: 2-If you have the following production function Q=f( L,K), answer the following : 1. is this…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: In the above figure, economies of scale are present up to an output level of 13,000 pounds of…

A: Economies of scale refers to the cost advantage to a firm which arises out of large scale…

Q: Explain how a firm may transition from the short-run production decision to the long-run production…

A: In short-run, Price = short-run marginal cost (SMC). The firm would produce that output at which P…

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: Which of the following best illustrates the concept of diminishing returns? As more people are…

A: The diminishing returns are the process in which the increased use of a product leads to a decrease…

Q: True or False: The shape of the production function reflects the law of increasing marginal returns.…

A: Marginal return is a short-run concept where at least one factor of production (i.e., capital) is…

Q: The table to the right shows the marginal product of capital and labour for each of several methods…

A: A production method refers to the process or system used to create goods or services. It involves…

Q: Consider the per-worker production function graph. If there is an increase in capital per hour…

A: A production function is a mathematical model that illustrates the correlation between inputs and…

Q: 7. Which of the following production models exhibit(s) constant returns to scale? A. Y = K + L B. Y…

A: Constant returns to scale is a state of production where increase in output is proportionally equal…

Q: QUESTION 13 In the ideas sector production function, AA =ZALat, there are O A. decreasing returns to…

A: Returns to Scale are measured by changing the inputs with a proportion and check how the outputs…

Q: In the long run: O A. all factors of production are variable. O B. all factors of production are…

A: The question is asking about the nature of factors of production in the long run. Factors of…

Q: Suppose that employment processes change so that more human capital is required for a given task.…

A: In a market, firms make changes in their business and economics activities due to which the…

Q: Which of the following factors of production is variable in the short run? labour machinery and…

A: In the mentioned question, we have been asked which is short-run among the mentioned factors.

Q: Quentity Selected Answer: Answers Consider the graph shown here. Implementation of advanced and…

A: The producers always look to reduce the cost of production. Advanced technologies help the producer…

Q: Along the vertical axis of the production function we typically measure 00 a. revenue. b. the…

A: The vertical axis of a production function generally denotes the output or production level. The…

Q: The short run is a time period such that O the existing firms in the market do not have sufficient…

A: The short run is a time period such that the firms which are prevailing in the market don't have…

Q: Why would a firm be happy to earn zero economic profits? Because zero economic profit means that the…

A: Accounting costs include only explicit cost. Economic costs include Explicit cost and implicit cost.…

Q: Assume the following for a given production function: • If inputs = 1 then total output = 5 • If…

A: Marginal product is the increase in total product due to additional unit of input. MPn = TPn -…

Q: 3.Those question have three answer to choose from; shift the production upward…

A: Increasing in production means producing more quantity of good or a service. This shifts the…

Q: Which of the following production functions does NOT exhibit constant returns to scale? a. Y =…

A: Constant returns to scale occurs when we increase the inputs by a constant, say t, and output…

Q: Which of the following production functions exhibits increasing returns to scale? OA. AY=k1/2 1/2 O…

A: Answer to the question is as follows:

Q: Suppose you're a manager at a plant producing Aston Martin cars. You estimate that your production…

A: Production function explains how inputs like labor and capital are converted into outputs. It stands…

Q: Which of the following statements are true regarding the concept of returns to scale? [Check all…

A: Let production function Q = F(L, K)Double the inputs by a scalar z > 0.Q = F(zL, zK)If F(zl, zl)…

Q: There is an earthquake of magnitude 7.5. What would be the impact on the country's production…

Q: 1. Assume a daily production function for a firm is Q=min(3L, 4K) a. If L 100 and K = 100 what…

A: Here we calculate the followings terms of production and cost by using the given information and…

Q: Question 2 in the second stage of production function the TP and MP is O A. TP is increase and MP is…

A: MP is the derivative of TP. Therere are three stages of production which shows the increasing…

Q: Answer questions number 15 and 16 on the basis of the following output data for a firm. Assume that…

A: Given Number of workers Units of output 0 0 1 40 2 90 3 126 4 150 5 165 6 180

Q: 5. A company that produces auto parts has a production function of Q = 300 L-75 K-5. %3D If L= 250…

A: (i) Q=300L0.75K0.5L=250K=25Now,Q=300(250)0.75(25)0.5 Q=300×62.87×5Q=94,305

Q: 8) Use the following information on a hypothetical short-run production function to answer questions…

A: The law of diminishing marginal returns states that, in a production process, the successive…

Q: Elaborate the "concept of homogeneity and Returns to Scale. Mathematically prove the following…

A: Here, we have the production function:- XL,K=δ0LαKβ To prove the homogeneity of this production…

Question

A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on the
country's production function?
Select one:
O a. shift outwards
O b. movement upwards along the same curve
O c. shift inwards
O d. movement downward along the same curve
O e. remain unchanged

Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette
market, then
Select one:
O a. the equilibrium quantity of cigarettes smoked will be less than the socially optimal
quantity of cigarettes smoked.
O b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimal
quantity of cigarettes smoked.
O .There is not enough information to answer the question.
O d. the equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of
cigarettes smoked.

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

Introduction

VIEW

Answer

VIEW

Step by step

Solved in 2 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

A new highway linking two major towns is constructed. What would be the impact on the country's production function? Select one: a. remain unchanged O b. movement upwards along the same curve O c. shift outwards O d. movement downward along the same curve O e. shift inwards
How do increases in technology affect the aggregate production funclion? O A. With better technology, the aggregate production function shifts down because fewer workers are neoded O B. Even with technology increases, the aggregate production function will remain constant unless the technology increases are matched by increases in the physical capital stock. O C. As technology increases, diminishing marginal product sets in such that each unit of technology produces less output O D. With increases in technology, the aggregate production function shitfts up, indicating more output is produced from the same amount of inputs.
How does the slope of the production function illustrate diminishing returns? The slope of the production function becomes steep as the quantity of increases because of diminishing returns. A. more; capital B. more; labor O C. less; labor D. less; capital Click to select your answer. MacBook Air 吕0 000 000 FS F4 F3 esc F2 F1 % #
Consider the following constant returns to scale production function Y=f(K,AN). Doubling output is possible if one: a. None of the above. O b. Doubles simultaneously K, A and N. O C. Doubles simultaneously K and A. d. Doubles simultaneously A and N.
3. Production: a. State the decision rules used for finding the optimal amount of input(s) in both short-run and long-run production” b. Using your own words, explain the rationale behind each stated rule as if you were explaining them to someone who has not yet completed: c. The Demand for Labor is the visualization of what important short-run production concept, and what would shift this demand curve to the right? d. Use your answer above to explain why some worker (labor) earn much more than others, and why some workers are at a risk of losing their jobs to machines (capital). e. Explain why a Cobb-Douglas production function such as Q = LaKb s much more realistic than production functions such as Q = aL + bK
4. At Alan's landscaping firm, labor is fixed in the short run. Increasing his use of capital always leads to additional output and his production function exhibits both increasing and diminishing marginal returns to capital at different points. Using a two-panel diagram, sketch the marginal, average, and total product of canital at Alan's firm. Your diagram does not need to be to scale, but must be internally consistent and consistent with both the information given and economic theory. Explain your diagram and the relationship between the different curves.
The figure shows the total product curve for different levels of a variable input, labor. Output Total Product curve АВ с D E Quantity of Labor In the figure, at point C O average product equals marginal product O marginal product is at a maximum total product is increasing at an increasing rate average product is declining but positive
Use the diagram below to answer the questions that follow. Capital (machine hours) 6 A 10 10 15 Labor (hours) Capital (machine houn) What do the diagrams above illustrate? 10 10 B Labor (hours) decreasing returns to scale and B constant returns to scale constant returns to scale and B increasing returns to scale increasing returns to scale and B constant returns to scale increasing returns to scale and B decreasing returns to scale
41. Which statement is correct Economic profit is higher than accounting profit Economic profit is less than accounting profit They are similar None is correct 42. Why the slope of production function become flatter when with more output produced? productivity of worker become higher diminishing return of output to input more contribution of input when produce more all are correct ล้างสิ่งที่เลือก อื่นๆ:
18. In the short run, Boeing cannot: A. hire more engineers to design jetliners B. use additional rubber and steel in jetliner production C. employ more clerical workers in the finance department D. increase the size of its jetliner assembly plant
公2 60 R %24 4. # 3 QUESTION 8 The nearest and largest trading partner with the United States is: OA. Canada. OB. Mexico C. Germany. OD.China. QUESTION 9 Given decreasing returns to scale between labor input and output, an increase of 10% in labor will increase output E OA. More than 10%. OB. 10%. OC. 100% OD.less than 10%. QUESTION 10 MAR 12 tv MacBook Ar 08 F4 F5 F7 F8 5. ) 80
which of the following production functions is an increasing, decreasing or consistent return to scale please show your work a. y=L^0.3K^0.5 b. y= LK^0.5 c. y= L + K