QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob. imply decreasing returns to scale c. are not necessarily inconsistent with increasing returns to scale d. occur at all combinations of input usage e. occur only for labor

Q: Diminishing marginal returns occur when: Group of answer choices the size of the plant is increased…

A: Diminishing marginal returns occur when the addition of one more unit of a variable input leads to a…

Q: 36) In the short run, if marginal product is A) above; decreasing B) below; decreasing C) above;…

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

Q: Y = 2X{X} WHICH OF THE FOLLOWING ASSUMPTIONS APPLY TO THIS RELATIONSHIP. INCREASING RETURN TO SCALE…

A: Production function states the relation between output and inputs.

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: (d) The long run average cost curve is U shaped because up to a certain point you have excess K/L…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: 10  true or false Long-run average cost slopes downward over a range of output where a firm…

A: Cost curves are graphical representation of different costs that a firm incurs during the production…

Q: What is the total output changes due to changes in all inputs in the same proportion is called as?…

A: In the field of financial matters, especially in the creation hypothesis, understanding how the…

Q: A Moving to the next question prevents changes to this answer. Question 1 Cost schedule Total…

A: Total Variable Cost  is consist of total (variable + fixed) cost Variable expenses are those costs…

Q: b. If AC= Q?-4Q+10 i. Final the total cost and marginal cost function. Is this function is more…

A: TC = Q x AC = Q3 - 4Q2 + 10Q MC = dTC/dQ = 3Q2 - 8Q + 10

Q: In the long run, the total cost function will be: Selected answer will be automatically saved. For…

A: Long run is the time period where no inputs are fixed instead all inputs are variable.  In short run…

Q: With reference to returns to scale: a) Explain what is meant by returns to scale. b) Use an isoquant…

A: a) Returns to scale refers to how the output changes as the input changes. There are three types of…

Q: Order the following components of a long run average cost curve as output expands based on which…

A: In the long-run, an average cost curve shows different phases of production when average cost…

Q: If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?

A: Here input increase 4× and output increase 6×

Q: Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to…

A: Definitions In the short run, increasing input after reaching maximum capacity while keeping at…

Q: If a firm's average total costs decrease as it increases its scale of production, the firm is…

A: Economies of scale is when the increasing production decreases the average total cost.  Diseconomies…

Q: (4) w = 3. firm's production function is F(K, L) = 2√/K + L. Factor prices are r = 2 and (a) Find an…

A: The marginal product of labor represents the increase in output as a result of an increase in labor…

Q: Suppose that a firm is currently operating producing 100 units at a total cost of $2,000. If they…

A: Economies of scale is when the increase in output decreases the long run average cost.Diseconomies…

Q: 0. If all inputs are trebled and the resultant output is doubled, this is a case of

A: Returns to scale refers to the extent of change in output level when all the inputs are raised by…

Q: Can a firm have diseconomies of scale, econmies of scale and constant returns to scale

A: Economies of scale is when the ATC decreases with the increase in quantity.  Diseconomies of scale…

Q: Answer all the following seven parts. (a) Show the conditions for a Cobb-Douglas production function…

A: The term "long-run" refers to a period during which the production function is determined solely by…

Q: Diseconomies of scale are present when. Select one or more: O a. total costs fall as output rises O…

A: Large firms may experience economies of scale or diseconomies of scale as their output grow.

Q: A firm faces the production function: q=10L^0.32 K^0.56  (a) What kind of returns to scale does…

A:

Q: When the quantity of a variable input is increased from 4 to 6 units, the total output increases…

A:

Q: 50. If all inputs are trebled and the resultant output is doubled, this is a case of

A: answer is given below

Q: .ConsiderthsCobb-Dougas production function：Y=K"L".What does this function exhibit? a.Diminishing…

A: Given    Production function: Y=K"L" Increasing return to scale: If all inputs are increased by λ…

Q: 4. Questions and Diseconomies of scale The law of diminishing marginal returns erence between the…

A: Law of diminishing marginal return applies to short run where at least one factor is fixed

Q: If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?…

A: Returns to scale are the quantitative changes in output induced by a proportionate increase in all…

Q: Given the production function, the portion of the total product curve,  which is concave upward…

A: In an economyz production possibility curve shoes the trade-off between two products to be produced…

Q: (a) Will the envelope curve be tangential to the bottom of each of the short-run average cost…

A: 3. (a)Long run average cost (LAC) is called envelop curve because it  envelops all short run average…

Q: If cost is measured along the vertical axis and output on the horizontal axis, total fixed cost is…

A: Total Fixed Cost (TFC) refers to the sum of all costs that do not change with the level of output…

Q: LRATC minimum ATC A between points A and B. B to the left of point A. to the right of point B. at…

A: Diseconomies of Scale : Diseconomies of scale can be defined as that situation when as output…

Q: 50. If all inputs are trebled and the resultant output is doubled, this is а case of A. O Constant…

A: Returns to scale is a long-term concept which tells the response of output when the number of inputs…

Q: Given a production function with a specific amount of fixed resources and one variable resource,…

A: The total product refers to the total output produced by the firm with the given resources and…

Q: b. Using the table below indicate if the firm has (i) diseconomies of scale (ii) economies of scale…

A: Since you have posted multiple questions, we will provide the solution only to the first question…

Q: a large-scale producer selling a wide range of soft drinks. (a) Outline and explain the sources of…

A: Diseconomies of scale occur when a business grows so large that the costs per unit increase. It…

Q: question 22-23. Number of Workers Hired 4 55 6 7 8 Question 22 Diminishing marginal returns set in…

A: Diminishing marginal returns, also known as the law of diminishing returns, is an economic principle…

Q: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

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-…

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.