Question

In the short run in production a firm:         a.     has at least one fixed input                 &nbsp

In the short run in production a firm:

        a.     has at least one fixed input                    c.     can only change one input

        b.    has at most one variable input               d.     can change all of its inputs

A firm’s production function describes the relationship between

        a.     inputs and cost of production                

        b.    inputs and output

        c.     output and cost

        d.    output and revenue

If a firm’s expansion path curves upward at an increasing rate, this implies

        a.     it uses proportionately more labor than capital as output expands

        b.    its costs will be increasing at an increasing rate as output expands

        c.     its production function exhibits increasing returns to scale

        d.    it uses proportionately more capital than labor as output expands

        

Homework Answers

Answer #1

Answer 1 is A

Because when we assumed in a firm two factors of production labour and capital.

In short run at least one factor is fixed .

But in long run both are variable.

Answer 2 is B

Production function is related to input and output.

Input like labour and capital combination and use this combination producer produce output.

Answer 3is C

Because expansion path is the locus of point of producer equilibrium resulting from changes in total outlay while keeping factors price constant.

So when output grows proportionately more then input.

Thank u plz rate positively.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1- As a firm expands by adding more of the variable input to fixed inputs, it...
1- As a firm expands by adding more of the variable input to fixed inputs, it experiences: a) constant returns, diminishing returns, increasing returns b) diminishing returns, constant returns, increasing returns c) increasing returns, constant returns, diminishing returns d) diminishing returns, increasing returns, constant returns 2- The Production Function is: a curve concave to the origin an upside down parabola A straight line sloping upward An "S" curve 3- The production function shows the relationship between total product, (output or...
In the​ short-run, we assume that capital is a fixed input and labor is a variable​...
In the​ short-run, we assume that capital is a fixed input and labor is a variable​ input, so the firm can increase output only by increasing the amount of labor it uses. In the​ short-run, the​ firm's production function is q = f(L, K)​, where q is​ output, L is​ workers, and K is the fixed number of units of capital. A specific equation for the production function is given​ by: q = 8LK + 5L2 − 13L3 or​ ,...
In the case of a short-run production function: A) all of the inputs are variable. B)...
In the case of a short-run production function: A) all of the inputs are variable. B) the amount of labor employed is held constant. C) at least one of the inputs is fixed. D) all of the inputs are fixed. Answer: 2) X-inefficiency refers to the situation in which: A) highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits. B) firms...
production function Consider a firm that produces a single output good Y with two input goods:...
production function Consider a firm that produces a single output good Y with two input goods: labor (L) and capital (K). The firm has a technology described by the production function f : R 2 + → R+ defined by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital. (a) In an appropriate diagram, illustrate the map of isoquants for the firm’s production function. (b) Does the...
a firm produces its output (y) using three inputs: capital (K), labour (L) and materials (M)....
a firm produces its output (y) using three inputs: capital (K), labour (L) and materials (M). Its production function is y = K0.2L0.5M0.3. For which input(s) does production exhibit a diminishing marginal product? Select one or more: a. capital b. labour c. materials The firm’s production is characterised by Select one: a. decreasing returns to scale. b. constant returns to scale. c. increasing returns to scale.
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale b. Decreasing Returns to Scale c. Increasing Returns to Scale d. Constant Returns to Scale e. Diseconomy of Scale 2. A production function where the MRTS is constant at all points. Isoquants are straight lines. Select one: a. Production Function b. Isoquant c. Perfect Substitutes Production Function d. Isocost Line e. Technology Function f. Fixed-Proportions Production Function 3. A production function with L-shaped isoquants...
1) A firm uses two inputs in production: capital and labor. In the short run, the...
1) A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. If the cost of renting capital increases, which of the following curves will be affected? (Check all answers that apply) a) Average fixed cost b) Marginal cost c) Average total cost d) Average variable cost 2) If the cost of hiring workers increases, which of...
Fixed costs include: Select one: a. variable labor expenses. b. output-related energy costs. c. output-related raw...
Fixed costs include: Select one: a. variable labor expenses. b. output-related energy costs. c. output-related raw material costs. d. variable interest costs for borrowed capital. If a total product curve exhibits increasing returns to a variable input, the cost elasticity is: Select one: a. equal to one. b. greater than one. c. unknown, without further information. d. less than one. f the productivity of variable factors is decreasing in the short-run: Select one: a. marginal cost must increase as output...
The production function for a firm is given by q = L0.75 K0.3 where q denotes...
The production function for a firm is given by q = L0.75 K0.3 where q denotes output; L and K labor and capital inputs . (a) Determine marginal product of labor. Show whether or not the above production function exhibits diminishing marginal productivity of labor. (b) Calculate the output (or production) elasticity with respect to labor. c) Determine the nature of the Return to Scale as exhibited by the above production function. Show and explain all calculations
An electronics plant’s production function is Q = L 2K, where Q is its output rate,...
An electronics plant’s production function is Q = L 2K, where Q is its output rate, L is the amount of labour it uses per period, and K is the amount of capital it uses per period. (a) Calculate the marginal product of labour (MPL) and the marginal product of capital (MPK) for this production function. Hint: MPK = dQ/dK. When taking the derivative with respect to K, treat L as constant. For example when Q = L 3K2 ,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT