Does it make sense to consider the returns to scale of a production function in the short run? A.Yes, this is an important short-run characteristic of production functions. . B.Yes, returns to scale determine the diminishing marginal returns of the inputs. C.No, returns to scale is a property of the consumer's utility function. D.No, we cannot change all of the production inputs in the short run

Short Run Production Function shows the relationship between the Physical inputs and physical…

Answered: Does it make sense to consider the…

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

Input either "increase" or "decrease" where relevant: A decrease in the price of a complementary good will cause its complement’s equilibrium price to ...... and the equilibrium quantity to .....
According to microeconomic theory, an input factor may be: a. Fixed in the short run, but will always be variable in the long run. b. Fixed in the short run, and fixed or variable in the long run. c. Variable in the short run, but will always fixed in the long run. d. Either fixed or flexible in the short run, and either fixed or flexible in the long run.
Input either "increase" or "decrease" where relevant: An increase in the prices of inputs will cause the equilibrium price to ....... and the equilibrium quantity to .....
Jillian's slushee store faces an isocost curve given by C=10L+5K. L = number of employees, K = number of slushee machines. If Jillian's total budget is 100 and she has 5 employees, she can afford __________ machines. The slope of the isocost curve (K on the y-axis) is __________. For each additional employee, to keep her costs the same, Jillian has to give up __________ machines.
Demand functions are usually assumed to be linear in the competitive market model because: The marginal utility of consumption is assumed to be decreasing. Supply functions are assumed to be convex. O Utility is usually linear in money. It makes the models easier to use. Returns to scale must be constant in competitive markets. No answer.
This is for Macroeconomics
Problem 1 a) The local cleaner launders white clothes using the production function q = 3B + G, where B is the number of cups of a brand bleach and G is the number of cups of a generic bleach that is half as potent. a.1) In a graph, draw an isoquant. a.2) What are the marginal product of B and G? What is the marginal rate of technical substitution? Technology
In our paper airplane company, some inputs were fixed and some were variable. Match the input to whether it was VARIABLE or FIXED. Paper- Stapler- Staples- Employees- Production space-
.2. Tiva has a crafts store that makes jewelry using beads (B) and copper (C). Her productionfunction for jewelry is given byQ = B0.4C0.4Suppose she can buy beads and copper at prices PB and PC, respectively.(a) Calculate Tiva’s marginal rate of technical substitution between B and C.(b) Does this production function have increasing, constant, or decreasing returns to scale?Explain. (c) Set up the cost minimization problem you would use to calculate Tiva’s cost functionC(Q) in Lagrangian form. (Note: You do not need to solve it or derive first orderconditions.Suppose Tiva decides to branch out in her jewelry offerings by getting a 3D printer. The costof producing new 3D printed jewelry isC(Q) = 25 + Q24For the rest of this problem, assume Tiva can produce fractions of jewelry, don’t worry aboutrestricting your answers to whole numbers.(d) Compute Tiva’s marginal cost and average cost of production for 3d printed jewelry.(e) Explain why she will shut down when the market price falls…
Grease Tech produces oil changes. The production of oil changes reles on both capital (K) and labor (L) and is combined in the following production function F (K, L) = KILL Take the derivative of this production function with respect to capital. What is the marginal product of capital evaluated at (le. just plug in the numbers) 64 units of capital used and 16 units of labor?
With a production function like Y=zN, which of the following must be true at the optimum? A).The marginal product of labor is smaller than real wage. B).The marginal product of labor is bigger than real wage. C).The representative firm makes positive profits. D). Profits of the representative firm are zero.
3. Optimal inputs: A firm has a production function, y = ln(l, k) in a market with prices Py = 20, pe = 4, Pk = 5. Find the firm's profit maximizing choice for y, l, and k. How much profit do they earn?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

	A.	Yes, this is an important short-run characteristic of production functions. .
	B.	Yes, returns to scale determine the diminishing marginal returns of the inputs.
	C.	No, returns to scale is a property of the consumer's utility function.
	D.	No, we cannot change all of the production inputs in the short run