Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to illustrate their relationship

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Short run average cost curve is the per unit cost of production in the short run. In the short run,…

Q: Microsoft's operating system is an example of a system produced with Select one: O a. Economies of…

A: Economies of Scale:This refers to the cost advantages that a business can achieve as its production…

Q: 5. Provide the formula/calculation for the following costs: Average Total Cost, Average Fixed Cost,…

A: Costs, in general, explains the producer’s expenditure in producing a commodity it includes various…

Q: What is the marginal physical product (MPP) of a variable input, like labor?How do you derive the…

A: The marginal physical product (MPP) is the change in output caused by a change in the amount of…

Q: Which of the following is NOT a feature of iso-product curve? Iso- product curves

A: An iso-product curve is locus of numerous mixtures of elements of manufacturing giving the identical…

Q: Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for…

A: Total product is calculated in the below table. When labor increase from two to three workers, the…

Q: please help

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: Question 3 If a firm is able to double output when it doubles input, it has... Group of answer…

A: "Returns to scale refers to the rate at which output produced changes when all inputs in the…

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.