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...
Output (unit)
Input 1 ($)
Input 2 ($)
Input 3 ($)
Input 4 ($) ...
Output (unit)
Input 1 ($)
Input 2 ($)
Input 3 ($)
Input 4 ($)
10,000
50,000
20,000
70,000
10,000
20,000
50,000
40,000
70,000
40,000
30,000
50,000
60,000
70,000
90,000
40,000
50,000
80,000
70,000
160,000
50,000
50,000
100,000
70,000
250,000
The table shows, that the firm costs $50,000 on input 1, $20,000
on input 2, $70,000 on input 3, and $10,000 on input 4 to produce
10,000 units of output as shown on the second row.Please choose
what the...
Find the cost minimizing input combinations in the following
problems:
- f(k, ℓ) = 4k^3 ℓ^2...
Find the cost minimizing input combinations in the following
problems:
- f(k, ℓ) = 4k^3 ℓ^2 , r = 2, w = 1, q = 100
- f(k, ℓ) = min{2k, 3ℓ}, r = 2, w = 3, q = 10
2. In the above question, you found the cost minimizing input
combination that produces 100 units of output. Now find the cost
minimizing input combination for any positive quantity of output q
to obtain the firm’s conditional factor demand...
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 ,...
3) Suppose a firm’s cost function is C(q) = 3q2 (2 squared) +
15.
a. Find...
3) Suppose a firm’s cost function is C(q) = 3q2 (2 squared) +
15.
a. Find variable cost, fixed cost, average cost, average
variable cost, and average fixed cost.(Hint: Marginal cost is given
by MC = 6q.)
b. Find the output that minimizes average cost.
:4) Suppose that a firm’s production function is q = x0.5 in the
short run, where there are fixed costs of $1,000, and x is the
variable input whose cost is $1,000 per unit. What...
1.If the total cost function is C(Q) = 15Q2+ 10, what
is the marginal cost?
10/Q...
1.If the total cost function is C(Q) = 15Q2+ 10, what
is the marginal cost?
10/Q
15Q
15Q+10/Q
30Q
None of these.
2.When a firm increased its output by one unit, its AFC
decreased. This is an indication that
the law of diminishing returns has taken effect.
MC < AFC.
AVC < AFC.
the firm is spreading out its total fixed cost.
3.If the production function is f(L, K) = aL +2aK where a > 0
is a constant, L...