Suppose that a food manufacturing company produces two goods, A and B, using the same plant and labor. The total cost of producing A and B is give by: (in the picture)   Is this total cost function consistent with the present of increasing or decreasing returns to scale

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: Q4.Suppose we are given the constant returns to scale (CES) production function q={ßa+aa }1/a a.…

A: The production function determines all the input bundles that produce the same output level.The…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: 13. Suppose you have a production technology given by f(x1,x2) = min{2r1, r2} and you are producing…

A: In a market, when a firm produces a product, it requires various input resources like labor, raw…

Q: charlie is running a coffe shop and are currently selling 200 coffees. it cost them 2,0000 to hire a…

A: Fixed cost is the part of total cost that does not depend on output produced. It remains fixed even…

Q: Consider a production function with two inputs: f(x1,x2) = (x1)a(x2)b Suppose that a = 0.7 and b =…

A: Increasing return to scale is when the increase in input by m time increases the output by more than…

Q: production function Y=F(K,L) = 2K + VI . sa) Write its differential, dF(K,L). Consider the 54) Draw…

A: Given  Y=F(K,L)= L+2K

Q: Suppose the production function is given by Q = 5K - 3L What is the average product of capital when…

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

Q: Please choose two topics, one from Technical economies of scale and one from Pecuniary economies of…

A: Economies of scale are cost benefits that organizations gain when production becomes more efficient.…

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: Consider the production function Q = 32K L (a) By dividing by L, find the Average Product of Labour…

A: The production function is the combinations of the labor and capital which are required to produce…

Q: 6. The Miller Company is trying to determine the combination of inputs to produce a specific volume…

A: Costs are the expenses that firms incur during the production processes. The firm’s costs depend…

Q: Complete the following table, which shows the amount of ore produced (measured in tons) when various…

A: Total product is the total amount manufactured per a set of resources, average product is the…

Q: Grease Tech produces oil changes. The production of oil changes relies on both capital (K) and labor…

A: Marginal Product of capital is the additional output that is produced by hiring an additional unit…

Q: In a relationship among total, average and marginal products, where TP is maximized:

A: The Total product (TP) implies the sum total of output produced using each nit of variable factor.…

Q: 4. A firm has the following production function: Q = 50L + 6L² – 0.5L3 %3D (a) production function.…

A: Answer - "Thank you for submiting the questions.But, we are authorized to solve first sub parts…

Q: A firm uses the inputs of Iron and labor to produce Cars. Suppose that the quantity of labor is…

A: Marginal product is the amount by which production of a commodity changes from employing more unit…

Q: The total cost of producing 3 products is given by:   TC=2A+3B+4C+2ABC   1. Is the total cost…

A: The total cost (TC) function is a mathematical depiction of the total cost incurred by a firm to…

Q: A production function is represented by P=f(L), where L is labour. As input L increases, the total…

A: Marginal product is the addition in total product when one more unit of variable factor is employed.…

Q: a. Graphically illustrate this situation on a graph using isoquants and isocost lines. Explain…

A: Solution a:For the given graph a, the the labor is 160 units and capital is 5 units. The labor input…

Q: Suppose the first four units of a variable input generate corresponding total outputs of 200, 350,…

A: Marginal product is the additional output that is earned from using additional input in the…

Q: A firm has the following production function: Q=f (L/K). It must pay $20 per hour of labor and rents…

A: Figure -1 shows the AVC, AFC, ATC and MC curve as follows:

Q: Exercise A.5 A company operates with production function q=K¹/2¹/2 a) What type of returns to scale…

A: Returns to scale refers to the proportional increase in output as a consequence of increasing the…

Q: 1. A firm can manufacture a product according to the production function Q = F(K, L) = K³/4L¹/4 a.…

A: Q = K3/4L1/4

Q: What is the average product doing when the marginal product is decreasing? Why?

A: Average Product (AP): Average product represents the average output produced per unit of input. It…

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: Solve the exercise with a production function with diminishing returns: In this case, production…

A:

Q: The production function of a firm is f(x, y) = min{x, y}. This is a constant returns to scale…

A: The constant return to scale states that increasing all inputs (i.e., K and L) by a certain…

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: Suppose that corns are produced according to the production function q = 100K+ 50L, where q…

A: Production function

Q: 2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 15…

A: Diminishing marginal returns occur when an increase in Labor led to increasing in output at…

Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KL) a) Is…

A: In the study of economics, production functions represents the relationship between the quantity of…

Q: Suppose a firm has a Cobb Douglas production function and is initially producing 50 units of output…

A: The Cobb-Douglas production function formula for a single good with two factors of production is…

Q: Consider a production function: x(l, k) = Alªkº. Showing all of your work: (a) Under what conditions…

A: Production function  is Cobb Douglas production function.The marginal product of labor for…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

A:

Q: 1. The following production function is used to produce wheat, q, from capi- tal, K, and labour, L:…

A:

Q: 2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 3 8…

A: Diminishing marginal returns occur when an increase in Labor led to increasing in output at…

Q: Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale.…

A: Return to scale is a long run concept, which measures the change in total output due to the change…

Q: From 1 labor hour up to 7 labor hours, what sort of marginal productivity does this production…

A: The marginal productivity of labor describes the additional output (or production) that a firm…