QUESTION 8 Suppose that the production function y-f(x_1,x_2) (where: y is output level, x_1 is a variable input and x_2 is a fixed input plotted in the (y, x_1) space. According to economic theory, we would expect: O ay to increase with x 1 at a decreasing rate, due to increasing returns to scale. O b.y to increase with x_1 at an increasing rate, due to diminishing returns to scale. OCy to increase with x_1 at a decreasing rate, due to diminishing returns to scale. O d.y to increase with x_1 at an increasing rate, due to increasing returns to scale. QUESTION 9 In the cost minimisation model found in Varian (2014, Ch. 21), an isocost curve is: O a. The locus of output (y) and variable input x_1 associated with a same cost level. Ob. The locus of variable input x 1 and variable input x_2 associated, associated with a same ouput level. CCTHE locus of cost of variable input x_1 and cost of variable input x_2. Cd The locus of variable input x_1 and variable input x_2 associated with a same cost level.
QUESTION 8 Suppose that the production function y-f(x_1,x_2) (where: y is output level, x_1 is a variable input and x_2 is a fixed input plotted in the (y, x_1) space. According to economic theory, we would expect: O ay to increase with x 1 at a decreasing rate, due to increasing returns to scale. O b.y to increase with x_1 at an increasing rate, due to diminishing returns to scale. OCy to increase with x_1 at a decreasing rate, due to diminishing returns to scale. O d.y to increase with x_1 at an increasing rate, due to increasing returns to scale. QUESTION 9 In the cost minimisation model found in Varian (2014, Ch. 21), an isocost curve is: O a. The locus of output (y) and variable input x_1 associated with a same cost level. Ob. The locus of variable input x 1 and variable input x_2 associated, associated with a same ouput level. CCTHE locus of cost of variable input x_1 and cost of variable input x_2. Cd The locus of variable input x_1 and variable input x_2 associated with a same cost level.
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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hand written asap please do it correctly will upvote..don't answer after 5.25 pm
![QUESTION 8
Suppose that the production function y-f(x_1,x_2) (where: y is output level, x_1 is a variable input and x_2 is a foed input), is
plotted in the (y, x_1) space. According to economic theory, we would expect:
O a.
y to increase with x 1 at a decreasing rate, due to increasing returns to scale.
O b.y to increase with x_1 at an increasing rate, due to diminishing returns to scale.
OCy to increase with x_1 at a decreasing rate, due to diminishing returns to scale.
O d. y to increase with x_1 at an increasing rate, due to increasing returns to scale.
QUESTION 9
In the cost minimisation model found in Varian (2014, Ch. 21), an isocost curve is:
O a. The locus of output (y) and variable input x_1 associated with a same cost level.
O D. The locus of variable input x_1 and variable input x_2 associated, associated with a same ouput level.
OC The locus of cost of variable input x_1 and cost of variable input x_2.
Od. The locus
variable input x 1 and variable input x_2 associated with a same cost level.
uers to saue all anscers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35a491a5-bf39-4489-ad81-e71519d23406%2Fe6040d1d-8d51-49b9-82f4-81b7c60a402b%2Fnsfcag_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 8
Suppose that the production function y-f(x_1,x_2) (where: y is output level, x_1 is a variable input and x_2 is a foed input), is
plotted in the (y, x_1) space. According to economic theory, we would expect:
O a.
y to increase with x 1 at a decreasing rate, due to increasing returns to scale.
O b.y to increase with x_1 at an increasing rate, due to diminishing returns to scale.
OCy to increase with x_1 at a decreasing rate, due to diminishing returns to scale.
O d. y to increase with x_1 at an increasing rate, due to increasing returns to scale.
QUESTION 9
In the cost minimisation model found in Varian (2014, Ch. 21), an isocost curve is:
O a. The locus of output (y) and variable input x_1 associated with a same cost level.
O D. The locus of variable input x_1 and variable input x_2 associated, associated with a same ouput level.
OC The locus of cost of variable input x_1 and cost of variable input x_2.
Od. The locus
variable input x 1 and variable input x_2 associated with a same cost level.
uers to saue all anscers
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