The firm requires at least 2 units of good A or 4 units of good B in order to produce one unit of output Y. a) Describe this technology by mathematical function and draw the production function. b) Draw the isoquant that corresponds to 40 units of output Y.

Q: ompute the MRTS for this production function: Y (K,L) = 2K+5L

A: MRTS also known as the marginal rate of technical substitution is actually the rate at which…

Q: Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If…

A: For the constant return to scale production technology, the average cost of production remains the…

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y= f(x1,x2)=x1ax2b a=b=0.5 the price of factor 1 is 12, the price of factor 2 is 3

Q: Explain two reasons due to which economies of scale may arise. Write your answer within 40 words.…

A: Economies of scale refer to the cost advantage of the firms when they increase production. Economies…

Q: For the production functions of (1) and (2) create the isoquants for q = 100, and for q = 144 with K…

A: Isoquant curve represents the influence of all inputs on the level of output.

Q: Both capital and labor are variable inputs. Suppose the wage rate of labor is 16 (per hour) and the…

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

Q: For the production function: Q = 12LK , what happens to average cost as the firm produces more? A.…

A: Given, By putting this value of K in production function:

Q: Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a)…

A: TPL = 180L2 - 3L3 APL = TP/L = 180L - 3L2 MPL = CHANGE IN TP/CHANGE IN L = 360L - 9L2

Q: Isoquants have a v slope and, for Cobb-Douglas production functions, are The MRTS is v and is the v…

A: In an economy, the connection between total output to the amount of total input used in the…

Q: Suppose that a firm's production function is: Its marginal product functions are: q=101050.5 112 98-…

A: The production function is The cost of a unit of labor is $50.The cost of a unit of capital is…

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of transformation of inputs into output by using factors of production .…

Q: The only variable input a janitorial service firm uses to clean offices is workers who are paid a…

A:

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: Consider the following Cobb-Douglas production function, where a = ß=0.5: Q=K&LB. Find the equation…

A: An isoquant depicts all the possible combinations of inputs (labor or L and capital or K in the…

Q: If a firm is using optimal input proportions, it is minimizing its costs

A: A firm determines optimal input proportions by equating the slope of the isocost line with the slope…

Q: Mark launders his white clothes using the production function q=4B+G, where B is the number of cups…

A: Marginal Rate of technical substitution : Rate at which one factor of production is decreased in…

Q: When do we say that a firm is operating with least cost combination of inputs?

A: The different combinations of the resources used in the production process depend on the economic…

Q: A study published in Social Science Medicine, “Production Functions for General Hospitals,”…

A: Given  Production function  Q = 5*Staff.34*Beds.64*Drugs.04*Specialits.02 To make simple, let staff…

Q: Suppose the production function is given by Q4K + 3L What is the average product of labor when 10…

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

Q: Suppose that a firm's production function is: Its marginal product functions are: MPL = 5K0.5/L0.5 =…

A: Production function: The marginal product of labor: The marginal product of capital: Cost of labor…

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: Suppose the production function for T-shirts can be represented as q =  L0.25 K0.75. Show that the…

A: Isoqunat shows the different combinations of inputs (L and K) required to produce a given level of…

Q: Does this production function exhibit constant returns to scale? Using the marginal products you…

A: To evaluate if the production function displays consistent returns to scale, we must first see if…

Q: A firm faces the production function: q=10L^0.32 K^0.56  (a) What kind of returns to scale does…

A:

Q: Suppose that a firm's production function is: 112 95 Its marginal product functions are: 84 MP =…

A: Production function is the maximum set of output(s) that can be produced with a given set of inputs.…

Q: Create a table describing input combinations of labor and wheat flour in producing a certain cake.…

A:

Q: Find the MRTS for a firm with production function f(L,K)=(L)^2+vK. Is it diminishing?

A: A production function gives the technological relation between quantities of physical inputs and…

Q: q=35L + 40 K q=L0.5K0.5 For the production functions of (1) and (2) create the isoquants for q =…

A: In economics, a production function is a means of examining the relationship between input and…

Q: If the marginal product per dollar spent on capital is more than the marginal product per dollar…

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

Q: 1. Q = a₁₂H + a₂L + a¸ H² + a₁₂L² + a¸ HL, where a, >0 2. Q=aHLY, where a, a, y >0. a) Derive the…

A: A production function is an economic concept that explains the relationship between the amount of…

Q: Show the relationship between production function and cost function

A: Production function refers to the quantities of a physical product to the quantity of factors of…

Q: Emma sells hot chocolate outside of Yankees baseball games. They have two inputs in the production…

A: Given  Production function f(x1,x2)=x11/3x21/3

Q: Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a)…

A: Production Function studies the fundamental difference between physical input and output. It is…

Q: en the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a)…

A: The production function shows the relationship between the output and inputs. q = 10KLThe output is…

Q: A firm has the production function f(X, Y) = X/2 y!/2, where X is the amount of factor x used and Y…

A: The production function of the firm: f(X, Y)=X^1/2Y^1/2 The isoquant for such type of production…

Q: Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a)…

A: Returns to scale refers to how production of a good changes when units of both inputs change.