An economist estimated the learning curve for the production of Tesla vehicles to be: AC 433,094 N-0.135 where AC-average production cost and N = cumulative production. Data used was annual. Calculate the resulting learning rate. From this, we can conclude that ⒸAC declines about 13.5 percent per year due to learning ⒸAC declines about 9 percent per year due to learning. there is no learning effect. there are economies of scale in production.

An economist estimated the learning curve for the production of Tesla vehicles to be: AC 433,094 N-0.135 where AC-average production cost and N = cumulative production. Data used was annual. Calculate the resulting learning rate. From this, we can conclude that ⒸAC declines about 13.5 percent per year due to learning ⒸAC declines about 9 percent per year due to learning. there is no learning effect. there are economies of scale in production.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = 2K + L b) Q = 3L + L/K c) Q = Min(2K,L) d) Q = L*K
Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale. Provide relevant workings to support your answers. Q = 4L2 + 6LK + 3K2 Q = 2L2K0.6 Q = 0.25X + 5Y + 30Z
A firm has the following total revenue and total cost schedules: TR = $3Q. TC = $4,000 + $1.7Q. What is the break-even level of output? Round your answer to the nearest whole number. units What is the level of profits at sales of 4,500 units? Round your answer to the nearest dollar. $ As the result of a major technological breakthrough, the total cost schedule is changed to: TC = $6,500 + $0.5Q. What is the break-even level of output? Round your answer to the nearest whole number. units What is the level of profits at sales of 4,500 units? Round your answer to the nearest dollar. $
An economist estimated the learning curve for the production of Tesla vehicles to be: AC = 433,094*N-0.135 where AC = average production cost and N = cumulative production. Data used was annual. Calculate the resulting learning rate. From this, we can conclude that ⒸAC declines about 13.5 percent per year due to learning ⒸAC declines about 9 percent per year due to learning. Ⓒ there is no learning effect. there are economies of scale in production.
Consider several production functions below and indicate whether they exhibit constant, increasing or decreasing returns to scale. i) Q = L1/2 K1/2 ii) Q = 2L + 3K iii) Q = L2 iv) Q = L1/2
What is correct about the relation between the production function and costs? Question 10 options: If you become more productive, costs per unit increase There is no relation between costs and the production function Both the production function and the cost function are decreasing (have negative slope) If you become more productive, costs per unit decrease
Please indicate which multiple choice awnser is correct for question 1.1)1.2)1.3)Please indicate it correctly as I have had this awnsered with different letters to the awnser I was told 1.1 - A firm trebles its inputs and discovers that its output rises by a factor of four. This is an example of;Select one or more:a. constant returns to scaleb. diminishing returns to a variable factor c. increasing returns to scaled. economies of scale1.2 - Diseconomies of scale are present when.... Select one or more:a. marginalcostsriseb. long run average costs rise as output rises c. totalcostsfallasoutputrisesd. total costs rise as output rises 1.3 - If the demand for a firm’s product is price inelastic, this implies that Select one or more: a. price changes have no impact on quantity demandedb. a fall in price of 3% will lead to a decline in quantity demanded of more than 3%c. a rise in price will raise total expenditure on the goodd. a 5% rise in price will result in a fall in quantity…
Which of the following production function would exhibit increasing returns to scale? f(K, L) = (K+ L)1/2 f(K, L) = K + L f(K, L) = K1/4+ [1/4 Of(K, L) = KIL None of the above
The following equations represent the long-run production functions for four different technologies, where capital and labor are both variable inputs. For each function, indicate whether it exhibits increasing, decreasing, or constant returns to scale. Clearly show your derivations. (Note that in parts a and c, the exponents are decimals.) f(L,K)= 8L²K4 b. f(L,K)= L+7K c. f(L,K)= L³K d. f(L,K)= 4L+K? а. с.
How would you determine that a two-input Cobb-Douglas production function has decreasing returns to scale (DRS), increasing returns to scale (IRS) or constant returns to scale (CRS) depending on whether α1 + α2 is larger than, smaller than, or equal to one?
Which of the following production functions exhibits increasing returns to scale in the factors of production K and L? a. y = ĀK0.3 L0.75 b. y = Kª(ĀL)-e,0 < a < 1 c. y = ĀKO.3L0.3 d. y = ĀK/4 + L³/4
Assume a Cobb-Douglas production function of the form: 3 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal This production function exhibits q=10L0.28K0.59 (Enter a numeric response using a real number rounded to two decimal places.) OA. increasing returns to scale. OB. constant returns to scale. OC. initially decreasing but then constant returns to scale. O D. decreasing returns to scale. O E. initially constant but then decreasing returns to scale.