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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Suppose the production function for widgets is given by: Q = f (K, L) = 2 ∗ KL − K2/2 − L2/2 (a) Suppose L=5 (is fixed), derive an expression for and graph the total product of capital curve (the production function for a fixed level of labor) and the average productivity of capital curve. (b) At what level of capital input does the average productivity reach a maximum? How many widgets are produced at this point? (c) Again, assuming L=5, derive an expression for and graph the MPK curve. At what level of capital input does MPK =0? (d) Does this production function exhibit constant, increasing or decreasing returns to scale?
Suppose that Flamerock Tires must decide where to produce one million tires: the US, where wages are 30 and the cost of capital is 5; or China, where wages are 5 and the cost of capital is 25. Production in each location follows the same technology (production function) given by: Q = f(L, K) = L^0.25 K^0.75 Computationally solve the cost - minimizing input levels in each location to produce the goal of 1 million tires
QUESTION 1 The first observation to be made about technical progress is that historically, the rate of growth of outputs over time has exceeded the growth rate that can be attributed to the growth in conventionally defined inputs. Letting Q = A(t) f(K, L) (1) be the production function for society's output as a whole. The term A(t) in the function represents all the influences that go into determining Q other than K (machine-hours) and L (labor-hours) so that changes in A over time represent technical progress. For this reason, A is shown as a function of dA >0 time and presumably dt ; that is, particular levels of labor and capital become more productive over time. Using equation (1) above, show: (e,«.) a) The elasticity of output with respect to capital input b) The elasticity of output with respect to labor input (e,.) c) Show that the growth rate in output can be broken into the sum of two components, that is, growth attributed to changes in inputs (K and L) and other "residual"…
1. For each of the following production functions, determine if the tech- nology exhibits increasing, decreasing, or constant returns to scale. a. f(L;K)=L+Kb. f(L;K)=pL+pKc. f(L:K)=LK+L+Kd. f(L;K)=pKL+L+K
In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q = f(L, K), where is output, L is workers, and K is the fixed number of units of capital. Given a specific equation for production: or, when K = 29, Calculate the q = 8LK+ 5L² q = (8L × 29) + 5L² X - Average Product = 3 (13) ₁³. 102 and enter the values in the table to the right. (Round your answers to the nearest integer.) E Labor 624 0 6 8 10 12 Output or Product 0 481 987 1,500 2,005 2487 2,928 Production Marginal Product -- 241 253 257 253 241 221 Average Product -- 241 247 251 249
The following equations represent the long-run production functions for four different technologies, where capital and labor are both variable inputs. For each function, indicate whether it exhibits increasing, decreasing, or constant returns to scale. Clearly show your derivations. (Note that in parts a and c, the exponents are decimals.) f(L,K)= 8L²K4 b. f(L,K)= L+7K c. f(L,K)= L³K d. f(L,K)= 4L+K? а. с.
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…
qUESTION 3 Please help me figure out which of the following multiple choice questions are correct. Please tell me which choices are correct and which are wrong
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
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…
Problem 1 - Macroeconomics - please help.

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