onsider the following (Cobb-Douglas) production function: f(x1, x2) = Ax1α1 x2α2 , where A, α1, α2 > 0. The marginal product of input 1 is: a. Positive b. Zero c. Not enough information d. Negative

onsider the following (Cobb-Douglas) production function: f(x1, x2) = Ax1α1 x2α2 , where A, α1, α2 > 0. The marginal product of input 1 is: a. Positive b. Zero c. Not enough information d. Negative

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4QR

See similar textbooks

Related questions

Q: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: Microeconomics - Production Function A firm produces shoes using labor (L) and machinery (K) as…

A: Marginal product of labor refers to the additional amount of labor required to increase output by…

Q: If the slope of the total productivity line is decreasing as output increases, what does that say…

A: Marginal product is the increase in units if goods due to the additional unit of worker. Marginal…

Q: 13. Suppose you have a production technology given by f(x1,x2) = min{2r1, r2} and you are producing…

A: In a market, when a firm produces a product, it requires various input resources like labor, raw…

Q: Suppose a firm uses capital K and labor L to produce output Q with the following production…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: Solve it correctly last time incorrect solution provides Q) The marginal products of capital…

A: Given the output, cost is minimized when the following condition is satisfied : MPL/PL =MPK/PK It…

Q: 1. Suppose a chair manufacturer is producing in the short run (with its existing plant and…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A: Marginal cost is the cost which occurs due to the production of one more unit of output is called…

Q: What is a production function? Response option group It is the production technology It is the…

A: A production function highlights the relationship between quantities of physical inputs and…

Q: Axel's business has grown to the point where he had to hire a payroll department and HR department…

A: Diseconomies of scale is when the firm is experiencing the increasing average cost when output…

Q: A company is planning to manufacture mountain bikes. The fixed monthly cost will be S100,000 and it…

A: Given that fixed monthly cost for manufacturing mountain bikes is $100,000. Cost of each bicycle is…

Q: A firm has the production function f(#1, 72) = 1750 50. %3D What is the marginal rate of technical…

Q: If c=3q-3q2+q3is a cost function, when is marginal cost decreasing?

Q: 1. For each of the following production functions, (a) F(L, K) = LK³ (b) F(L, K) = L+3K (c) F(L, K)…

A: Since there are multiple questions posted, we will answer first question with four subparts. If you…

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: A Cobb-Douglas production function for new company is given by FF(KK, LL) = KK3/5LL2/5 where K…

A: The optimal quantity of labor and capital would be when MPL / MPK = W / R

Q: Number of Workers Number of Chairs 1 10 2 18 3 24 4 28 5 30 6 28 7 25 a. Calculate the average and…

A: The average product of labor is derived by dividing the total product by the inputs. It is also…

Q: 86. Average and marginal costs. The total daily cost (in dollars) of producing x city bikes is given…

A: Total cost function: The total cost is in dollars. The average cost function is the total cost…

Q: Suppose that a firm's production function is: 112- q = 10L0.5K0.5 98- Its marginal product functions…

A: Output has increased to 280 units, capital is 14 units. Therefore, q=10L0.5K0.5280=10L0.5(14)0.5…

Q: A firm's production function is 0=50L – 0.01Ľ' , where L denotes the size of the workforce. Find the…

A: Given : Q=50L-0.01L2 The law of diminishing marginal productivity states that when an advantage is…

Q: Refer to the graph below: У2 0 У The graph above illustrates a production set of a firm. (a) Which…

A: Microeconomic firm theory examines how enterprises optimize profits through manufacturing,…

Q: The Cobb-Douglas production function is a classic model from economics used to model output as a…

A: a) For the formulation of the model: For the max = 6 with L0.75 & C0.25 P(L,C) = 6L0.75C0.25…

Q: 16. The total cost to make q quilts is C(q) = 73 +1.2q +0.05q2. a. What is a function for the…

A: 16.a) Marginal cost is the change in total cost in response to quantity. It derived by taking the…

Q: a software production firm, average product has started falling and total output indicated…

A: A mathematical association between marginal product(MP) and average product(AP) expressing that the…

Q: Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2…

A: Given production function :- F(L, K) = 2L1/2 K1/2 w = $30 r = $25 P = $50 K0 = 900 (fixed) So the…

Q: explain short run and long run cost of production analysis with graphs

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: The "Sad Student" Company finds that it costs a total of C(q) = 9720 +500q – 1.5q² +0.005q Dollars…

A: The total cost function is the minimum total cost borne by a firm for any given level of output (q)…

Question

Question 8 m

Consider the following (Cobb-Douglas) production function: f(x₁, x₂) = Ax₁^α1 x₂^α2 , where A, α₁, α₂ > 0. The marginal product of input 1 is:

	a.	Positive
	b.	Zero
	c.	Not enough information
	d.	Negative

Full explain this question and text typing work only thanks

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Refer to the graph below: y2 The graph above illustrates a production set of a firm. (a) Which assumption(s) do(es) the production set violates? Explain. (b) Suppose the firm decided to scale all inputs up or down by some amount t > 0. What will happen to the level of output?
Solve it correctly last time incorrect solution provides Q) The marginal products of capital (MPK) and labor (MPL) are, respectively, MPK = 2000 units; MPL = 1500 units. The input prices are: PK = $10/unit; and PL = $150/unit. To minimize production costs, the firm should A. increase both capital and labor B. decrease both capital and labor C. increase capital; decrease labor D. decrease capital; increase labor E. do nothing; costs are minimized
oboard S Font Paragraph S Sensitivity Styles Editing Voice A Cobb-Douglas production function for new company is given by FF(KK, LL) = KK3/5LL2/5 where K represents the units of capital and L represents the units of labor. Suppose units of labor and capital cost $200 and $100 each respectively. If the budget constraint is $30,000, find the maximum production level for this company. VAAAWMMAA AAAAAAAAA SAAAAAAA
part D E F urgently needed
If the slope of the total productivity line is decreasing as output increases, what does that say about marginal productivity? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b Question 32 C Marginal productivity is increasing. Marginal productivity is decreasing. Marginal productivity is flat (constant). d Cannot be determined from the information given.
Consider a firm that produces a single output good Y with two input goods: labor (L) and capital (K). The firm has a technology described by the production function f : R? → R+ defined by f(1, k) = Vĩ + vk, where l is the quantity of labor and k is the quantity of capital. (a) In an appropriate diagram, illustrate the map of isoquants for the firm's production function. (b) Does the firm's technology satisfy the following properties: (i) strict monotonicity (i.e., are the marginal product of labor and the marginal product of capital strictly positive), (ii) the no-free-lunch property, (iii) constant/decreasing/increasing returns to scale? (iv) 1
Please solve Max in 30-45 minutes thank u and no reject. Please send the solution thank u... Chapter Microeconomics
None
Q)solve it correctly The marginal products of capital (MPK) and labor (MPL) are, respectively, MPK = 2000 units; MPL = 1500 units. The input prices are: PK = $10/unit; and PL = $150/unit. To minimize production costs, the firm should A. increase both capital and labor B. decrease both capital and labor C. increase capital; decrease labor D. decrease capital; increase labor E. do nothing; costs are minimized
13. Suppose you have a production technology given by f(x1, x2) = min{2x1, x2} and you are producing at the point where a1 = 10 and x2 = 20. what we mean (generally) by the 'marginal product' of an input in (a production.
part D E F
1. Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers: NUMBER OF WORKERS NUMBER OF CHAIRS 10 2 18 3. 24 4 28 5. 30 28 6. 7 25 a. Calculate the marginal and average product of labor for this production function. b. Does this production function exhibit diminishing returns to labor? c. Explain intuitively what might cause the marginal product of labor to become negative.