Which of the following statements are true if Isoquants can be convex, linear, or L-shaped? Statement 1: The MRTS can be diminishing as we move down along the isoquant. Statement 2: Linear isoquants imply that the slope is constant. Statement 3: L - shaped isoquants imply that the firm is producing under a fixed proportion.

Which of the following statements are true if Isoquants can be convex, linear, or L-shaped? Statement 1: The MRTS can be diminishing as we move down along the isoquant. Statement 2: Linear isoquants imply that the slope is constant. Statement 3: L - shaped isoquants imply that the firm is producing under a fixed proportion.

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

If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits Group of answer choices diminishing profitability. increasing returns to scale. increasing marginal product. decreasing marginal product.
Determine the multifactor productivity for the combined input of the labor and the machine time using the following input : labor :3000$,material :800$, .overhead: 20o0$ . keep in mind the production is 1760 unit
Q2) Consider the following production function TPL = 12L2 – 0.8L3 Determine the marginal product function(MPL) Determine the average product function (APL) Find the value of L that maximizes TPL Find the value of L that maximizes APL Find the value of L that maximizes MPL
Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100? $20 $10 $50 $100
Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100?
Suppose a firm could produce data storage services using two inputs: high capacity hard drive (200 TB) or low capacity hard drive (100 TB).   What is the production function and what is a typical set of isoquant?
Consider the followng production function: 1 2 9 = x?x where x, and x, measure the employed quantities of input #1 and input #2, respectively. (a) Solve for and graph this firm's isoquant at q isoquant. 10. Please label three points along this (b) Does this production function exhibit increasing, decreasing, or constant returns to scale? Explain. Please corroborate your answer using a set of isoquants when the quantity of both imputs gets doubled. Note: Be sure to plot x2 along the y-axis.
Lesson 7- Production Question 8
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL= $1 and PK = $1.What is the smallest total cost necessary to produce Q = 100?
QUESTION 12 A firm has the production function f(x, y) = 20x3/5 2/5. The slope of the firm's isoquant at the point (x, y) = (50, 70) is (pick the closest one) a.-1.50. O b.-2.10. c.-0.71. d.-0.36. e.-0.67.
A firm estimates its long-run production function to be Q = -0.0050 K3L3 + 15 K2L2 Suppose the firm employs 10 units of capital. At units of labor, average product of labor begins to diminish? A) 350 B) 66.67 C) 100 D 150 E) 1500