does the isoquant map look like if there are 1)continuously increasing returns to scale; 2)continuously decreasing returns to scale? Please illustrate.

Q: Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these two…

A: The marginal physical product of labour can be defined as the increase in firms' revenue due to the…

Q: Explain two reasons due to which economies of scale may arise. Write your answer within 40 words.…

A: Economies of scale refer to the cost advantage of the firms when they increase production. Economies…

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: charlie is running a coffe shop and are currently selling 200 coffees. it cost them 2,0000 to hire a…

A: Fixed cost is the part of total cost that does not depend on output produced. It remains fixed even…

Q: CAPITAL 10 15 LABOR O 0 0 0 1 20 20.7 20.5 2 38 39.3 40 3 54 57 58.5 4 68 73 76 5 80 87.3 92.5 6 90…

A: Introduction Its answer is It has decreasing returns to scale at all level of capital. Table of…

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: Please choose two topics, one from Technical economies of scale and one from Pecuniary economies of…

A: Economies of scale are cost benefits that organizations gain when production becomes more efficient.…

Q: Explain the Law of Returns to Scale with the help of an example.

A: Long run refers to a period of time in which all the input of the firm are totally variable, that…

Q: Present a graph of the following. Label your graphs completely 1.  Using the isoquant map and…

A: Isoquant:  Q=f(K,L) Q= Output L= Labor K= Capital Isoquant is the line which represents the same…

Q: Mark launders his white clothes using the production function q=4B+G, where B is the number of cups…

A: Marginal Rate of technical substitution : Rate at which one factor of production is decreased in…

Q: Give a numerical example to show that as marginal physical product (MPP) rises, marginal cost (MC)…

A: Marginal Physical Product (MPP) is the addition to the total physical product when an additional…

Q: Describe the two main types of internal diseconomies of scale?

A: According to the given question In simple words we can say that the internal diseconomies of scale…

Q: Explain what we mean by increasing, decreasing and constant returns to scale.

A: Returns to scale is defined as the change in output due to a quantitative increase in the inputs of…

Q: Microeconomics - Production Function Find the returns to scale of the following production…

A: In order to find the returns to scale of the production function , We put a constant before every…

Q: A firm has the production function f(X, Y) = X/2 y!/2, where X is the amount of factor x used and Y…

A: The production function of the firm: f(X, Y)=X^1/2Y^1/2 The isoquant for such type of production…

Q: What is the distinction between the laws and of returns and the returns to scale?

A:

Q: Why do we have diseconomies of scale? In a diagram, show MES

A: The process of production makes use of various inputs and converts them into finished output. These…

Q: using an isoquant/isocost diagram explain the difference between diminishing returns to a variable…

A: Isocost lines are the contours of different budget constraints that show equal level of cost with…

Q: "Isoquants and isocosts are tools of optimization." Analyse the statement.

A: The firm uses inputs in the production process which is called factors of production. There are four…

Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…

A: When the inputs are perfect complements, isoquant is L-shaped.

Q: Explain the concept of economies of scale. Identify two reasons why economies of scale exist. 1-2…

A: Explain the concept of economies of scale.   Economies of scale :- It means mass production of…

Q: Explain two types of economics of scale that a person might gain by moving from a small food stall…

A: Economics of scale is gained when the production scale decreases long term AC. This means it is…

Q: We can describe inputs as either fixed or variable. Thinking about a company that assembles cars,…

A: In the production process, some of the resources are considered as fixed while others are variable…

Q: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.