Show me the steps to solve:You will need to draw and label a graph thatcombines two different ideas from this module. Startwith the concept of a scale economy showing thelabor time in hours per year versus the volumeproduced. Then, add to this standard graph newmarks and labels on the quantity axis showing yourown assumptions about production levels that aresufficient for the various scales identified in centralplace theory. Finally, write a short answer describingthe connection between economies of scale,agglomeration and urbanization

Here is the sample graph that illustrates the concept of economies of scale, showing the labor…

Answered: Show me the steps to solve: You will…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume instead that pharmacists and robots dispense prescriptions according to the following production function: Y = 10*KO.8L0.2 where Y is the number of prescriptions dispensed; L is the number pharmacist hours, and K is the number of robot hours. In addition, $10 worth of materials is used for each prescription. a. What is this type of production function called, and what are we assuming about the relationship between robots and pharmacists by using this production function? b. Derive the cost - minimizing demands for K and L as a function of output, the wage rate and the rental rate of capital. c. Use these results to derive the total cost function: costs as a function of y, r, w, and the $10 materials cost. d. Pharmacists earn $32 per hour. The rental rate for robots is $64 per hour. What are total costs as a function of Y? e. Does this technology exhibit decreasing, constant, or increasing returns to scale?f. The pharmacy plans to produce 40,000 prescriptions per week. At the…
AS U4 Read the following scenario. Superconductor technology is becoming a widespread and indispensible component of the machines we use today. Superconductors can be found in everything from transportation to electronic signal transmission. Due to our increasing reliance on technology, the demand for superconductors has skyrocketed. As a result, production has also increased exponentially, which has greatly reduced the cost per unit. Use the scenario to answer the following questions. Explain how the producer's marginal revenue, the marginal cost of producing superconductors, economic profit on superconductor technology, and the producer's economic profit have changed
The aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of labor, what is aggregate output? Group of answer choices 600 1000 150 3000
Discuss the content of the concepts of "short run" and "long run" as used in the theory of firm and relate them to returns to scale. 1.2 Give a formal definition of a separable production function, in words and mathematically; and provide a clear verbal description of what it means intuitively. 1.3 1.4 Why is duality in production of interest to a micro economist?
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
QUESTION THREE: PRODUCER THEORY 1. Suppose the production function for automobiles is given by q = kl - 0.8k² - 0.21² where q represents the annual quantity of bicycles produced, k represents annual capital input, and I represents annual labor input. a) Suppose k=10; graph the total and average productivity of labor curves. At what level of labor input does this average productivity reach a maximum? How many cars are produced at that point? b) Again, assuming k=10, graph the MP curve. At what level of labor input does MP₁ = 0 c) Suppose capital inputs were increased to k-20. How would your answer to parts (a) and (b) change? d) Does the production of automobiles exhibit constant, increasing, or decreasing returns to scale? 2. Supposing that the firm in (1) is a competitive firm and its production function is y = 10 + (x - 1,000)¹/3. The price of the input x is w = 1. (a) Show that the firm's total cost curve is C(y) = 1,000 + (-10)³. (b) Show that the minimum of the marginal cost curve…
Given the following Cobb-Douglas production function, how much more output is produced by adding one more unit of capital (keeping labour constant) when K=100 and L=25? Y=4K0.5 L0.5 a.1 b.2 c.3 d.4
Use the diagram below to answer the questions that follow. Capital (machine hours) 6 A 10 10 15 Labor (hours) Capital (machine houn) What do the diagrams above illustrate? 10 10 B Labor (hours) decreasing returns to scale and B constant returns to scale constant returns to scale and B increasing returns to scale increasing returns to scale and B constant returns to scale increasing returns to scale and B decreasing returns to scale
Problem 1 - Macroeconomics - please help.
AS U4 Read the following scenario. Superconductor technology is becoming a widespread and indispensible component of the machines we use today. Superconductors can be found in everything from transportation to electronic signal transmission. Due to our increasing reliance on technology, the demand for superconductors has skyrocketed. As a result, production has also increased exponentially, which has greatly reduced the cost per unit. Use the scenario to answer the following question. Calculate a long-run average cost curve for superconductors.
In economics and econometrics, the Cobb-Douglas production function is a particular functional form of ne production function, widely used to represent the technological relationship between the amounts of two r more inputs (particularly physical capital and labor) and the amount of output that can be produced by nose inputs. The function they used to model production is defined by, P(L, K) = 6LªK!-a where P is the total production (the monetary value of all goods produced in a year), L is the amount f labor (the total number of person-hours worked in a year), and K is the amount of capital invested (the onetary worth of all machinery, equipment, and buildings). Its domain is {(L, k)|L > 0, K > 0} because L nd K represent labor and capital and are therefore never negative. Show that the Cobb-Douglas production function can be written as P P(L, K) = 6LªK1-a → In K L In b+ a ln K
Define the term “returns to scale”, how it is measured, and explain the three different states of constant returns to scale, increasing returns to scale, and decreasing returns to scale.

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