The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Question

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Answer 1

Question

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.

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The production function for a product is given by Q =100KL.if the price of capital is 120 dollars per day and the price of labor 30 dollars per day what is the minimum cost of producing 1000 units of output ?

Answer 2

Question

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.

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Answer 3

Question

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.

Answer 6

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.

Answer 7

Chapter 3, Problem 1RQ

To determine

The concept of production functions along with the factors that cause a shift in the production function and other factors that determine the total output that an economy can produce is to be determined.

Answer 8

Expert Solution & Answer

Explanation of Solution

Production function explains the relationship between output produced and inputs used in the production process with the given technology.

Mathematically, a production function can be expressed as follows-

Y=AF(K,L)

Where,

Y = output produced

A= labor productivity measure

K= capital input

L= labor input

The factors that can shift a nation’s production function are as follows-

Improvement in technology- Any technology advancement leads to efficient production. Labor gets skilled and can produce more using the same amount of inputs. This, in turn, shifts the production function upward.
An increase in capital stock and labor- Rise in the availability of inputs leads to an upward shift in the production function. As with more inputs, more output can be produced.

The level of factors of production including land, labor, capital, and entrepreneur determine the level of output an economy can produce. Higher the availability of factor inputs, the higher will be the output produced by an economy.