Q7. Provide your own examples for the questions below. a. An example for economies of scale using production function. Explain why. Explanation: b. An example for diseconomies of scale using production function. Explain why. Explanation: c. A real example of a firm that enjoys economies of scale and explain why this happened. Explanation:

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: A production process uses two inputs, labor and capital. If the marginal product of labor per dollar…

A: Marginal productivity refers to the additional output produced by using one more unit of input while…

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: 2. i) With the aid of an appropriate diagram explain what is meant by economies and diseconomies of…

A: i) Economies of scale:Economies of Scale is an economic situation where the long run average total…

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: 35) What is the firm’s efficient scale?  A. the quantity of output that minimizes average total…

A: (35)  A firm's efficient scale implies the production of output such that it minimizes the average…

Q: Define economics of scale and explain they might arise. Define diseconomies of scale and explain why…

A: Economies of scale apply to the property that as the quantity of product increases, the long-run…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false?

A: Economies of scale and returns to scale are two sides of the same coin.

Q: 24. A specific production process can be represented by the production function, f(x1, x2) = (x 1/2…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 4. A firm producing cars. The production function for shoes (Q) is: Q = K"² L"² where K is capital…

A: Answer -

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

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Q: 1) Use the graph to answer the question. Between points C and D, the long-run average total cost…

A: As per the guidelines answer is given to the first question. (1) "Long run average total cost curve…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

A:

Q: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: Returns to scale can be classified into three categories; 1- Increasing returns to scale (IRS) 2-…

Q: Consider a company using the economic production quantity model. a. Derive the percent change of…

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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: Distinguish between economies of scale and economies of scope. Why can one be present without the…

A: Economies of scale refers to the bulk production of a single product to lower the cost of production…

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: a.)Suppose that labor is the only variable input in the production process. If the marginal cost of…

A: Note: You have uploaded two questions at a time. Hence, we shall answer only the first one for you.…

Q: (a) Find an example of a production technology that is such that two inputs must be used in fixed…

A: The production function shows the relationship between inputs and output produced. Inputs are the…

Q: The law of diminishing marginal returns states: Select one: a. As a firm uses more of a variable…

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.