F(Kt, Lt, At) Explain through example how diminishing marginal products can occur in the production process? If the form of the production function is a Cobb-Douglas function, show the production equation for constant return to scale conditions!Do diminishing

F(Kt, Lt, At) Explain through example how diminishing marginal products can occur in the production process? If the form of the production function is a Cobb-Douglas function, show the production equation for constant return to scale conditions!Do diminishing

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 3SQP

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Does this production function exhibit constant returns to scale? Using the marginal products you have computed in the previous part.
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(a) Suppose we have the following production function: Q=K²/³L2/³ Does the technology have constant returns to scale (CRS)? If not, what? Show your work and explain what it means.< (b) What is the firm's cost minimi on problem in the long-run? Explain and illustrate in a figure using isocost and isoquants how termine optimal inputs K and L. ← (c) Now, consider the short-run where K is fixed at 8 (so that K²/³ = 4). Let r = $20 and w = $10. Show then discuss how short-run average costs change as Qrises. You can use math or a table/figure to do this. (d) Suppose P = $15. Show that optimal Q = 64 in the short-run. You can use math or a spreadsheet. Show details. < (e) Now suppose P = $5. Should the firm shut-down and set Q=0? Explain. <
A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does this production function feature? Show work. (b) Does this production function exhibit downward-sloping and convex isoquants? Explain.
Please answer all parts get like please Hand written not allowed.
Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph T PL, APL, and MPt. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (ii) the maximum value of M PL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
A production function is represented by P=f(L), where L is labour. As input L increases, the total output will increase but what will happen to marginal product? Can marginal product be zero? if so, what it mean
True or False. Please explain The production function f(x1,x2,x3) = (min{0.5x1;0.75x2 })0.5 ·x30.5 describes technology which exhibits constant returns to scale..
For the production function: Q = 12LK , what happens to average cost as the firm produces more? A. Increases B. Stays constant C. Decreases
Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
Given the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a) Mathematically find the minimum cost combination of capital and labour to produce a given level of output.b) Does the production function in part (a) show increasing returns to scale, decreasing returns to scale, or constant returns to scale? Explain. (c) Using isoquants and isocosts, graphically illustrate the effect of an increase in the wage rate, assuming the firm is producing at the same level of output.