Q: Y = 2X{X} WHICH OF THE FOLLOWING ASSUMPTIONS APPLY TO THIS RELATIONSHIP. INCREASING RETURN TO SCALE…
A: Production function states the relation between output and inputs.
Q: Consider production function f(L, K) = 10VLK and input prices w :10,r = 90.
A:
Q: True or false? a. The AFC curve can never rise. b. Diminishing marginal product is a long-run…
A: The AFC stand for Average Fixed Cost curve which refer to that price of a commodity in the economy…
Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…
A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…
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A: This is used in chemical firm where there is Direct relationship between pipe flow capacity and…
Q: A local entrepreneur has built a successful business which is still growing. He is aware that the…
A: A local entrepreneur has built a successful business which is still growing. He is aware that the…
Q: Someday, if you want to be an economist or to study more about economic analysis, what platform you…
A: While studying economics, economists have the capability to reduce costs while using different…
Q: If fixed cost decreases to $16,000, does this change the production decision of the airline in the…
A: There are two types of costs, one is fixed and other is variable.Fixed cost does not depend on…
Q: During short period, diminishing returns may follow because
A: To find : What results in following diminishing results.
Q: When the MC curve is above the AVC curve, the AC curve must be decreasing.
A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…
Q: Draw the isoquant map for the technology q = √LK. Be precise.
A: Isoquant shows all the different combinations of the two inputs that can used in order to produce…
Q: What is a production function? Response option group It is the production technology It is the…
A: A production function highlights the relationship between quantities of physical inputs and…
Q: The first unit of a product took 1,000 hours to build and the learning curve is 85%. How long will…
A: To produce the first unit takes 1000 hoursTo produce second unit = TN=T1(Nb) T2=1000×(2log2 0.85)=…
Q: With the aid of a graphical illustration (with complete labels, preferrably virtual), describe the…
A: Total Fixed Cost (TFC) are the costs that are fixed regardless of production, such as factory…
Q: If marginal cost is less than the average variable cost and output increases, average total cost…
A: Average variable cost(AVC) is the ratio of total variable cost(TVC) to output(Y). Average total…
Q: Find fixed cost if output is 20 units and AFC is $21
A: Given information, Total output= 20 units Average fixed cost (AFC)= $21 To find: fixed cost
Q: Marginal cost is plotted (as an approximation) halfway between successive units of output. a. True O…
A: Costs represent the expenses that firms incur during their production activities. A firm incurs…
Q: If average cost is increasing over a range , it should be the case that a) marginal cost is smaller…
A: When MC < ATC, in this range ATC is decreasing. When MC > ATC, in this range ATC is…
Q: True or false. The U shape of the long-run ATC curve is the result of diminishing returns.
A: Average total cost:The term average total cost refers to the amount or magnitude that comes after…
Q: TB, TC TC A TB ID rence: TB and TC Curves maximum NB is can be seen by the distance between AG and C
A: the correct answer is B. E and B
Q: A new machine increases fixed cost and may or may not increase ATC as the…
A: The cost of production is the cost incurred in the process of production in the economy by a firm.…
Q: When a firm experiences economies of scale in production, a. long-run average total cost declines as…
A: In the long run, firm can change its all factors of production and produce the output where the…
Q: A research study published in Social Science Medicine. "Production Functions for General Hospitals,"…
A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…
Q: Describe the behaviour of the ATC in relation to MC
A: Marginal cost (MC) is the additional cost incurred on producing one extra unit of the output.…
Q: ) The short run is a time period in which: (a) all resources are fixed.…
A: In economics, we study the interaction and the decision-making of the economic agents at the…
Q: The transition from economies of scale to dis economies of scale is more likely to occur in a…
A: Economies of scale is defined as the cost advantage that is reaped by firms when the production of a…
Q: When average cost decreases as output increases, Group of answer choices marginal cost is below…
A: The economies of scale curve is a long-run average cost curve since it permits all variables of…
Q: True or false The unit share of fixed costs changes in a direct direction with the change in the…
A: Fixed cost: It is the cost that remains constant and does not get affected by the increase or…
Q: Fixed costs and Variable costs are considered to be costs.
A: The factor of productions are the labor, raw materials, capital, land etc which incurred some cost.…
Q: Total variable cost as output increases, and total fixed cost as output increases Select one: A.…
A: The variable cost is the cost that changes when the output changes. This includes labor cost, cost…
Q: MNLOGS harvested logs (with no inputs from other companies) from their property in northern…
A: Given,MNLogs harvested logs with zero input cost and sold these logs to MNLumber for $1,500. Then…
Q: verage fixed cost (AFC) A) rises as output rises. B) rises as output falls. C) falls as output…
A: Average fixed cost (AFC): - it is the per-unit fixed cost or we can say the average value of fixed…
Q: Which of the following are relevant to a firm’s decision to increaseoutput: (a) short-run average…
A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…
Q: Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90.
A:
Q: List some practical limits to economies of scale; that is, when should a plant stop growing?
A: Economy of scale is the improvement that a company acquires from the size or scale of manufacturing.
Q: The vertical distance between ATC and AVC is equal to TVC O AFC
A: 1. ATC = AFC + AVC Therefore AFC = ATC – AVC 2. AFC curve is downward sloping with increase in…
Q: Economies of Scale Constant Returns to Scale Diseconomies of Scale han 400 bikes per month en 300…
A: Economies of scale occurs when there are certain cost effective advantages are accuring to a firm…
Q: Q15 _____ cost declines over the whole range of output. a. Average variable. b. Total variable. c.…
A: Total fixed cost (TFC): - it is the cost incurred on the fixed capital assets like land, building,…
Q: The distance between the AC and AVC curve narrows because the MC increases as more mountain bikes…
A: A cost curve in economics is a graph representing production costs as a function of total amount…
Q: A company is planning to manufacture mountain bikes. The fixed monthly cost will be $100,000 and it…
A: Since you have asked a question with multiple subparts, we answer the first three for you. If you…
Q: The MC curve cuts the AVC and ATC curves at
A: To find : Marginal curve where cuts average curve
Q: Which of the following results when an increase in all inputs results in a more-than-proportionate…
A: Answer - a) Diseconomics of Scale - It is the opposite of economics of scale . Diseconomics of…
Q: Small and medium sized contractors are most likely to keep ony____on staff
A: Small and medium-sized contractors are the ones operating at the basic level. They have limited…
Q: If marginal cost is less than the average variable cost and output increases, average total cost…
A: Total cost is the sum of total variable cost and total fixed cost. Total variable cost changes with…
Q: Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages,…
A: With the increase in wages , the cost curve will rise to show the higher cost .
The difference between ATC and
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- Describe the behaviour of the ATC in relation to MCThe slope of an isoquant is known asE. A firm has the production function f(T1, 12) = 1750 , 50 What is the marginal rate of technical substitution (M RTS)? (a) MRTS =-1 2.5x, (b) MRTS = -x2/x1 (c) MRTS = -5x2/01 (d) MRTS =-0.5x2/21 (e) MRTS = -0.2x2/21 %3D %3D
- 3 1 Y = 2X} X} WHICH OF THE FOLLOWING ASSUMPTIONS APPLY TO THIS RELATIONSHIP. INCREASING RETURN TO SCALE DECREASING INCOME TO THE SCALE FIXED RETURN TO THE SCALEThe profit function for a certain commodity is P(x) - 190x - x - 1000. Find the level of production that yields maximum profit, and find the maximum profit. units P-$ Need Help? Talk to a Tutor Read t Watch itThe at a given production level x approximates the cost of producing the (x + 1)st or next item. screenshot attached
- please analyze the behavior of cost function and interpret the constant term in the expression of C(q)2. Draw isoquant maps for the following technologies. i) f(L, K) = LK ii) g(L,K) = L + 2K iii) h(L, K) = min (2L, K)If r increases, C and w unchanged, the isocost will shift parallely to the right shift parallelly to the left pivot towards point of origin pivot away from the point of origin
- Jason owns a lamp store. His total costs are $145,000 per year, and his fixed cost are $19,200. His production is 12,500 per year. This means that his average variable is how much? (hint: enter your answer in two decimals) The answer should be 10.06, please explain how to get to the answerA short production run with frequent adjustments to machines is considered a(n). process of production.If the accounting profit in an economy is $42 billion and the implicit cost is $29 billion find the economic profit.