follouring production functions exhibits increasing returns to scale in

Q: Explain the differences between diminishing marginal returns and diseconomies of scale.

A: Since the marginal return can be defined as the additional return by purchasing an additional…

Q: Consider the following production function: Q=KªLB a) Derive the cost function b) Draw the AC and MC…

A: * ANSWER :- * A)        at eqm, MRTS = w/r                         MRTS = MPL / MPK

Q: Long-run average total cost (Multiple Choices )     might have an upward-sloping segment that…

A: Long run average total cost is the long run cost per unit. Economies of scale refer to the situation…

Q: describe economies and diseconomies of scale while explaining possible reasons for both situations…

A: As the production size increases, a firm may experience economies or diseconomies of scale.

Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply,…

A: The law of deminishing marginal returns is one of the key standards of financial matters and is…

Q: mathematically, marginal cost is expressed as

A: Cost of production refers to the cost of inputs involved in the process of production of the good.…

Q: The most likely explanation for economies of scale is

A: Economies of scale refer to the cost advantages that a business obtains due to expansion. It's the…

Q: Show that the elasticity of scale for a homogeneous production function of degree k is precisely k.

A: The elasticity of scale: Elasticity of scale measures the proportionate change in output due to…

Q: The cost to produce x units is given by C ( x ) = 0.03x2 + 8.8x + 1600 + 6.8 square root of x.  Find…

A: Marginal-Cost(MC) is the cost(c) of producing one additional unit. Given the cost-function(c(x)),…

Q: A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total…

A: In business, the average total cost, or ATC, is the sum of all product costs divided by the volume…

Q: Average cost decrease indefinitely as output expands.   Is that true?

A: Economies of scale signifies a scenario where a firm reaps the cost benefits while carrying out…

Q: Short-run average total cost      shows the minimum average total cost for each level of output…

A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…

Q: can you answer part D  The average cost of production per thousand board feet is ​    ​(Round to…

A: Total Cost = Total Fixed Cost + Total variable costAverage cost = Total Cost / Quantity

Q: If a cobb-douglas production function shows decreasing returns to scale (that is the exponents sum…

A: Cobb Douglas's production function is a particular kind of functional form that shows the…

Q: Under what conditions do the following production functions exhibit decreasing, constant, or…

A: When an increase in inputs results in a proportional increase in output, there occurs constant…

Q: The economies-of-scale curve is a long-run average cost curve, because       it allows all factors…

A: Basics:- Short run:- It is a period of time in which fixed cost remains constant because all factors…

Q: Does the production function y=0.8x_1x_2 exhibit constant returns to scale, increasing returns to…

A: The inputs such as capital, labour and land are used to produce and output in the market is known as…