Quantity of capital (million S)$20$10100200Quantity of labor (person-years)line abline acline bcnone of aboveIsoquant II(200,000keyboards)Isoquant(100,000keyboards)FIGURE 4-1 Isoquants for a Fixed-Coefficient Production TechnologyWith constant returns to scale, the isoquants will be L-shaped and the production functionwill be the straight line through their minimum-combination points.According to Figure 4-1, which line refers to the most efficient input mix forproduction?

The complement inputs are used in the fixed proportion. These inputs are used jointly.

Answered: Quan $10 FIGURE 4-1 Isoquants fo With…

Quan $10 FIGURE 4-1 Isoquants fo With constant returns to s will be the straight line thr line ab line ac line bc ccording to Figure 4-1, v oduction?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 4. Explain how MP=decreasing within the Cobb-Douglas function (explain the functions and their…

A: Cobb- Douglas production is the technological representation of the two input production approach in…

Q: MCQ 45 Suppose the production function exhibits constant returns to scale, with diminishing marginal…

A: Here, it is given that the marginal productivity of both, labor and capital, the input resources is…

Q: Geralt works for Stregobor as a witcher earning $87,000 a year. He decides to quit his job and…

A: Economic cost includes both implicit costs and explicit costs. Implicit costs are those costs which…

Q: Refer to Figure 8.2. The marginal product of the fifth worker is 32 12 + 3 4 6. Total product

A: Marginal product alludes to the additional output, return, or profit yielded per unit by benefits…

Q: Assume that a firm is using the cost-minimizing combination of its only 2 inputs, capital and labor.…

A: Cost is minimized when the firm produces where the MPL/PL = MPK / PK MPL is the marginal product of…

Q: Refer to Table 14-2. What is the marginal product of the first worker? O a. 300 units O b. 50 units…

A: In economics, the marginal product of an input refers to the increase in output that occurs when an…

Q: QUESTION 6 When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: O A…

A: The marginal revenue product of labor (MRPL) is the incremental revenue that is received by the firm…

Q: The table shows the total product schedule at Paula's Ice Cream Parlor. Paula sells ice cream for $2…

A: The marginal product is the change in the output as a result of hiring one additional labour. MP =…

Q: 3. First, do the following functions exhibit increasing, constant, or decreasing returns to scale?…

A: Marginal product refers to the additional output or production that is generated by using one more…

Q: 7. Ahmed's Pizza House sells extra-large deluxe pizzas at OMR 9.000 per pizza. The cost of…

A: Given, Selling Cost of extra-large deluxe pizza = OMR 9 per pizza Cost of ingredients = OMR 2 per…

Q: Marginal cost is given by 20 + 10Q- 12Q2. Fixed cost is 100. What is the average cost? O A. 100 -3Q2…

A: Marginal cost means the cost incurred by the producer for producing an extra unit of commodity. and…

Q: Define the following Terms - Isoquant - Marginal rate of technical substitution - Production…

A: Since it makes an effort to employ scientific methods and applies them to the study of specific…

Q: The equilibrium of the producer is found at that point where O MPL/MPK > MRTS O The slope of…

A: Producer is at equilibrium when the combination of price and output gives the maximum profit to him.

Q: Froduction function for a commodity is: x = 2HLK - AL? - BK², find out at any point on constant…

A: A production function illustrates the relationship between the inputs used and the output produced…

Q: Number of Workers 0 1 2 3 4 5 6 Marginal Output Product of Labor 0 76 92 181 205 225 24 Value of…

A: Marginal product of labor refers to change in total product with change in labour input.

Q: Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that…

A: Marginal Revenue refers to the revenue that a firm or seller receives in the sale of an additional…

Q: 5. Janet has the production function z = f (x, y) = 2√x + √y where x and y are inputs and z is the…

A: In this question, we are introduced to Janet's production function, which represents the…

Q: Pays for each computer a cost f v=3, The fivm hes a produotiou function Y= k+2L and needs t prodwee…

A: Option a. If we put the values of option a then we get Y = 6 but we require Y = 12 . This is…

Q: The term productive efficiency means This is important because The term allocative efficiency means…

A: Productive efficiency ensures that the firm produces at efficient scale. Allocative efficiency…

Q: 2-If you have the following production function Q=f( L,K), answer the following : 1. is this…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: What is the explicit and implicit cost? Can explicit or implicit be used for a business or…

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: 24 A competitive firm will hire inputs up to the point where: a. The price of the-input equals îts…

A: The motive of a competitive firm is to maximize profits.

Q: Why would a tirm be happy to cam zero economic protts? Because zero oeonomic profit means that the…

A: Accounting profit = Total revenue – total cost Economic profit = accounting profit –…

Q: Al its current short-run evel of production, a irm's average variable costs equal $30 per unit, nd…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: Scenario: Victoria Corp. makes running shoes by employing a robotics technology that requires at…

A: One worker Two worker Robots MPK VMPK MPK VMPK First 2,000 2,000 2,100 2,100…

Q: 2. Short Run Cost and Product Curves [S O TPL = Q(L) = 10L½ 200 nav - The wage (price) of labor is W…

A: (a) Q = 10L1/2 => L1/2 = (Q / 10) => L = (Q/10)2 => L = Q2 / 100 -----------> Total…

Q: The table below gives the number of workers and their possible daily output for a company. The wage…

A: Marginal Product is the change in output due to one unit change in input or worker. Marginal cost…

Q: Marginal Product of labour table

A: Diminishing marginal returns is a concept in economics that states that as more of a variable input…

Q: According to the law of diminishing return in short run O as we hire more labors, while other inputs…

A: A production function represents the technical relationship of the manufacturing output with the…

Q: A cost-minimizing firm that has only 1 type of input will have its marginal factor cost equal to its…

A: Cost minimization is a financial strategy aimed at achieving the most cost-effective method of…

Q: What happens to average product (AP) when marginal product (MP) is less than AP? AP rises O O AP…

A: Average product is the total product divided by the input unit (labor). So, AP = TP/L .

Q: S Given a Cobb Douglas Production function Q = AK² Lb find the Elasticity of Substitutions 5 find…

A: We have given cobb Douglas production function Q=AKaLb Where a and b are constant parameters.

Q: a sad 000E2S pag 000's spas pu do 00525 sed weal sad 005 sagar an eat ad o009 wag sa panga000$ maand…

A: An economic profit or loss is the difference between the revenue received from the sale of an output…

Q: Consider this production function. Study hours 1 4 5. 10 11 12 13 14 15 or more Grade 20 33 42 50 57…

A: [1] Lets discuss options one by one:-a. UK workers have more free time than Greek workers.Ans. UK's…

Q: The ending inventory of work in process is: a. $219,250 b. $73,250 $65.000

A: The monetary value of goods remaining at the end of the year with a company is called ending…

Q: Solve for marginal product (MP) given the following If x = 25 units, Total Product = 100 units; if…

A: Marginal product is the additional output produced when an input is increased by 1 unit. Marginal…

Q: The manager's job in leading the previously mentioned production process is twofold: (1) to…

A: Managers of the firm has a place with the Middle level of the management. Managers generally goes…

Q: (A) Calculate the marginal product of labor for each level of labor use. (B) Assume the price of the…

A: The marginal product of labor measures the change in total output due to a change in labor. i.e.,…

Q: QUESTION 10 When Total product is at Maximum, Marginal product will be - O B. Negative ---- -- A.…

A: Total product (TP): - Total product is the amount of total final goods and services produced by a…

Q: In a short-run production process, a diminishing marginal product of labor explains why marginal cos…

A: The marginal product of labor can be defined as the increase in the output resulting from an…

Q: omce rent expenses.

A: Answer Explanation All subsequent area units thought-about implicit prices except paying rent on an…

Q: 12.Consider the production function Y= AKCL1-a, where A is a constant, L is labour, Kis capital and…

A: A production function illustrates the relationship between the inputs used and the output produced…

Q: uestion 5 ( Suppose the production function is given by Q = min{6K, L}. What would be the marginal…

A: Marginal Product of Capital: It tells how much additional output the firm can produce by employing…

Q: -. All inputs can be varied in O Short run

A: To find : When do input varies.

Q: & Calatiane dhe marginal product of each additional worker Each unit of output sells for $10.…

A: Marginal Product of Labor is the additional output produced due to the employment of an additional…

Q: The law of diminishing marginal product holds that as a variable input increases while other inputs…

A: The law of decreasing marginal product asserts that once a certain degree of consumption has been…

Q: The following statements are about the relationship between typical total product (TP), average…

A: Production function explains the unique relationship between quantities of physical inputs and…

Question

Quantity of capital (million S)
$20
$10
100
200
Quantity of labor (person-years)
line ab
line ac
line bc
none of above
Isoquant II
(200,000
keyboards)
Isoquant
(100,000
keyboards)
FIGURE 4-1 Isoquants for a Fixed-Coefficient Production Technology
With constant returns to scale, the isoquants will be L-shaped and the production function
will be the straight line through their minimum-combination points.
According to Figure 4-1, which line refers to the most efficient input mix for
production?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

To maximize profit, a firm OA. uses the quantity of land at which the rental rate equals the value of marginal product of land OB. uses the quantity of capital at which the suppliers' expected profit equals the value of marginal product of capital O c. uses the quantity of capital at which the marginal revenue equals the value of marginal product of capital O D. balances the rental rate of capital against the wage rate of labor 7 5 > 6 M & 7 O * 8 O Next C NS Co ho Miha NS. ythor ers [T Camp.
Typed plz Please give me guality solution Asap plz
Please give me proper calculation and full explanation otherwose i give multiple downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Ch07. ppt (Compatibility Mode] - Microsoft PowerPoint SIGN ANIMATIONS SLIDE SHOW TRANSITIONS REVIEW VIEW -|24 - AA E-E-E . lh Text Direction Align Tert- Shape Fil- 7 Shape Outline- Convert to SmAn- } Stvles - O Shape Effects Layout Reset BIUS A- Aa A Arrange Quick Section- es Font Paragraph Drawing Optimal Level of Variable Input Usage • Define the following • Total Revenue Product (TRP) = Q•P • Marginal Revenue Product (MRP) = ATRP A(Q P) P•AQ = P• MP AX AX AX • Total Labor Cost (TLC) =w•X ATLC = W • Marginal Labor Cost (MLC) = AX 2003 Prentice Hall Business Publishing Managerial Economics, 4/e Keal/Young NOTES COMMENTS Mehwish Bhatti's screen
Suppose that this conveyor-manufacturing firm has another location and would like you to evaluate the input mix decisions at this new location. Here is all you know about the newlocation. The marginal rate of technical substitution is currently 0.5. The marginal product of labor at its target level of output is 60 rollers per hour. What is the marginal product of capital? Ifthe rental rate for capital is $24 per hours at this location and the wage paid to labor is $12 per hour, could this location be minimizing the costs of producing its target level of output? Explain briefly.
6 In the production process, both the average product and marginal product of the variable input rise first, then fall, and then * rise to infinity True O False O
6
QUESTION 3 Two inputs, labour (L) and capital (K) are used to produce a given output. The Marginal Product of L is equal to K: the Marginal Product of K is equal to L The hourly wage is w = 1; the interest rate is r= 2. Which of the following mixes of inputs could be cost minimizing for some level of production? O a. (K-0, L=100) Ob.(K=100, L-200) OC (K-200, L=100) O d. (K-1, L=3) O e (K=0, L-3)
The figure shows the total product curve for different levels of a variable input, labor. Output Total Product curve АВ с D E Quantity of Labor In the figure, at point C O average product equals marginal product O marginal product is at a maximum total product is increasing at an increasing rate average product is declining but positive
Use the following to answer questions 5-6: Production Data for Baseball Bat Company Total output (No. of bats) No. of workers 1 20 42 3 66 4 94 124 6. 150 7 170 8. 184 194 200 9. 10 11 204 12 202 13 198 14 190 (Note: disregard the instructions above the table) Using the above table diminishing marginal returns set in after the worker is hired. O 12th 1st 7th 5th
Mr. R is working from7:30 AM to 3:30PM including lunch break for 5 days every week in jewelry design shop. His main task is designing authentic men's jewelries. He agreed to be paid by piece rate of 15 OMR /design for 15 weeks. If his daily output is 10 designs, calculate total earnings. O ,050 OMR O 10,500 OMR O 750 OMR O 11,250 OMR Labor demand and supply of labor are external factors that impact compensation practices. If supply of labor is less than the labor demand, most employers offer to jobseekers. O Higher rate Going rate O Lower rate O Market rate
22. Ahmed's Pizza House sells extra-large deluxe pizza at OMR 9,000 per pizza. The cost of ingredients to make extra large deluxe pizza is OMR 2.000, Ahmed pavs each of his employees OMR 60 per day. He also incurs a fixed cost of OMR 120 per day Calculate Ahmed's average fixed cost per day when he produces 50 extra-large deluxe pizza using two workers. a/pz 2/piz- price inpuls 1289 a. OMR 2.000 1265 bOMR 2.400 c. OMR 4.400 d. OMR 6.800