13. Suppose you have a production technology given by f(x1, x2) = min{2x₁, x2} and you areproducing at the point where x₁ = 10 and x₂ = 20.(a) Explain in words what we mean (generally) by the ‘marginal product' of an input inproduction.(b)For the production technology in this question and the initial point x₁ = 10 and x2 =20, what is the marginal product of a small increase in input 1?(c) Suppose input 2 increases and you are now at the initial point x₁ = 10 and x2 = 30.Relative to your answer in part (b), does the marginal product of input 1 decrease,increase, or stay constant? Explain briefly.

For part (c), since the production function at x1=10 and x2=20 is limited by 2x1, increasing x2…

Suppose you have a production technology given by f(x₁,x2) = min{2x₁,x2} and you are producing at the point where x₁ = 10 and x₂ = 20. (a) Explain in words what we mean (generally) by the 'marginal product' of an input in production.

Suppose you have a production technology given by f(x₁,x2) = min{2x₁,x2} and you are producing at the point where x₁ = 10 and x₂ = 20. (a) Explain in words what we mean (generally) by the 'marginal product' of an input in production.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the following production function: Y = F(K, L) A(2K + 3L) Does this production function exhibit constant returns to scale? =
Exercise A.5 A company operates with production function q-K¹/2 [1/2 a) What type of returns to scale does this production function present? As production varies, how would you expect long-term average costs to evolve? b) Assume that the firm's capital equipment is fixed and equal to K = 100 units. Find the firm's short-run production function and the marginal productivity of labour and graph these functions. As production varies, how would you expect marginal costs to evolve in the short term? c) If the prices of capital and labour are r = 8€ and w = 2€ respectively, obtain the expression of the short-run total cost function of the firm. b) Obtain the expressions of the functions of short-term average total costs, average variable costs and marginal costs of this company. Find the production level for which the average total cost is minimized and the corresponding average total cost level. d) Indicate the value of the average total cost, the average variable cost and the marginal cost…
A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does this production function feature? Show work. (b) Does this production function exhibit downward-sloping and convex isoquants? Explain.
Solve the exercise with a production function with diminishing returns: In this case, production increases as workers are added, but it increases less and less. a) Calculate the amount of production for each worker and add it to the table, taking into account the production function K 10 1 9. 2 8 3 7 4 6. 4 7 3 8 2 9 10 b) Explain why the production function exhibits diminishing returns to scale.
Consider the following production functions• F(L,K) = LK^3 For each for these production functions: (a) Draw the corresponding graph (b) Calculate the marginal product of labor and capital (c) Discuss if each marginal product is diminishing, constant or increasing (d) Calculate the marginal rate of technical substitution (e) Calculate if the function exhibits constant, increasing, or diminishing returns to scale*Just solve d and e
Please see the attached photo, and Only solve part d, e, and f
Could you solve last 3 questions? Thank you
Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for its hourly production. MARGINAL PRODUCT (Sandwiches per worker) 80 72 64 56 48 40 32 24 m 16 B When labor increases from three to four workers, total product increases by 00 18 8 16 Use the orange points (square symbol) to plot the production function on the following graph. Assume that if there are no workers, Underground Sandwiches does not have any output. 0 12 Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 9 m 2 0 0 O 2 3 LABOR (Workers) 0 O MP QUANTITY OF LABOR (Workers) 5 per hour. Production Function
Refer to the graph below: y2 The graph above illustrates a production set of a firm. (a) Which assumption(s) do(es) the production set violates? Explain. (b) Suppose the firm decided to scale all inputs up or down by some amount t > 0. What will happen to the level of output?
A firm has the production function f(X, Y) = x²/2 y1/2, where X is the amount of factor x used and Y is the amount of factor y used. On a diagram we put X on the horizontal axis and Y on the vertical axis. We draw some isoquants. Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant, the isoquant has a slope of -3. The straight line we drew Select one: O a. is vertical. b. is horizontal. c. is a ray through the origin with slope 3. d. is a ray through the origin with slope 4. O e. has a negative slope.
Suppose a pizza parlor has the following production costs: $5.00 in labor per pizza, $3.00 in ingredients per pizza, $0.20 in electricity per pizza, $1,500 in restaurant rent per month, and $250 in insurance per month. Assume the pizza parlor produces 1,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ (Enter your response as an integer.) What is the fixed cost of production (per month)? The fixed cost of production is $ ☐. (Enter your response as an integer.)
Isoquant curves The Firm can trade two doctors for five gardeners and output remains constant What is the shape is the isoquant curve for the firm? (doctors on x axis) Find slope of curve at: (20,15) (5,25) (5,15)