The shape of this production function suggests that a in the production function Y =K"L1-a isA. equal to one.B. greater than one.OC. equal to zero.D. less than one.E. Not enough information is given. YK

As we increase the quantity of capital, the marginal product of capital continues to decrease. So,…

Answered: The shape of this production function…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Q8
A certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?
1. What is labor cost?
Which of the following is true? a. When the average cost is decreasing, the total cost must also be decreasing. b. When the average cost is decreasing, the average product of labor must be decreasing. c. When the average cost is decreasing, marginal cost must be less than average cost. d. When average cost is decreasing, output must be decreasing.
How does the slope of the production function illustrate diminishing returns? The slope of the production function becomes steep as the quantity of increases because of diminishing returns. A. more; capital B. more; labor O C. less; labor D. less; capital Click to select your answer. MacBook Air 吕0 000 000 FS F4 F3 esc F2 F1 % #
At Stacy's current production level, an extra bunch of scarves adds 20 extra hats. Each bunch of scarves costs $53. What is Stacy's Marginal Cost of an extra hat?
а. Discuss the following statements: i. The second stage of production is the optimal one for a firm i. A lot of firms in the real world are not perfect ii. Cobweb theory does not apply in the real life situations
Refer to the figure at right. An increase in production from q, to q, A. is more costly in the short run than in the long run. B. uses less inputs in the long run. C. costs the same in the short run or in the long run. D. uses more capital in the short run.
According to a firm’s technology of production, you can take away 3 units of labor if you add 5 units of capital without changing production. The price of labor is $8 and the price of capital is $6. Assuming the firm’s MRTS is diminishing, this firm a. is minimizing cost at its current output level. b. should use more capital and less labor to lower the cost of producing its current output. c. should use less capital and more labor to lower the cost of producing its current output. d. should use less capital and less labor to lower the cost of producing its current output. e. None of above.
The total product curve studied in class represents the relation between total production by a firm and the quantity variations of total inputs. O True O False
34. An iso-quant gives: S Combinations of output that can be produced using different levels of inputs 0. Combinations of inputs that can produce a constant level of output C. Combination of out puts that can be produced with a given level of upuis. d. None of the above is correct
2. Capital A F E G B D Labor If the firm wants to produce the output level represented by the isoquant Qo, would you recommend production at point E or F or G? Please explain.

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The shape of this production function suggests that a in the production function Y =K"L-a is ) A. equal to one. B. greater than one. C. equal to zero. O D. less than one. E. Not enough information is given.