Question

State if true, false or uncertain and Explain: A firm with constant returns to scale technology...

State if true, false or uncertain and Explain:

A firm with constant returns to scale technology does not experience diminishing marginal product of labour.

In a consumption savings model, a positive income effect will result in more consumption in the first period and, therefore, will reduce savings.

Homework Answers

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
Question 12 The long-run average cost curve will be upward-sloping when the firm has: constant returns...
Question 12 The long-run average cost curve will be upward-sloping when the firm has: constant returns to scale. marginal returns to scale. economies of scale diseconomies of scale Question 13 A production function that is characterized by increasing returns to scale cannot be affected by diminishing marginal product. True False Question 14 A firm always operates at some point on its long-run average total cost curve in both the long run and the short run. True False Question 15 In...
1. (50 marks) True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of...
1. True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.) A) Firms typically make investment choices over a small time horizon when profit maximizing. B) The Cobb-Douglas production function can exhibit increasing, decreasing, or constant returns to scale. C) An isoquant represents every point of economically efficient production for a given quantity. D) In the short-run, the marginal product of labor...
TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and...
TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and equations to prove so if relevant. Based on the Solow growth model, different saving rates explain varying economic growth rates across countries we observe in the real economy. A competitive equilibrium of the Solow growth model is achieved only when the economy reaches the steady state. If the consumer’s preferences satisfies the “more is better” assumption, the indifference curves representing her preferences are necessarily...
State whether the following statements are true, false or uncertain and briefly explain the reason for...
State whether the following statements are true, false or uncertain and briefly explain the reason for your choice. Your grade will largely depend on the quality of your explanations. a. Suppose that a firm’s short-run total cost function is STC= 0.1q2 + 4q +100. Will the producer surplus at P=$15 be $302.5? b. Suppose that a firm is price taker. If the price is equal to marginal cost, then the profit is being maximized. c. If a firm wished to...
State whether true or false and explain: (a) The Keynesian consumption function predicts that the average...
State whether true or false and explain: (a) The Keynesian consumption function predicts that the average propensity to consume rises as income increases. (b) Labour-market reforms that reduce frictions in search and matching will lower the natural rate of unemployment.
true or false or Explain why each of the following statements is True, False, or Uncertain...
true or false or Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A5-1. The transaction of a consumer who buys a “meal-kit” sent to their home adds less to GDP than a similar consumer who goes out to a restaurant for the same meal. A5-2. When Canada legalized cannabis consumption it likely led to an...
Briefly explain after you decide if the statement is True, False or Uncertain 1. The Original...
Briefly explain after you decide if the statement is True, False or Uncertain 1. The Original Philips Curve (before 1970s) uses expected inflation as last year’s inflation 2. Using the Solow growth model, with or without technology, an economy that increases its saving rate will always experience faster growth 3. When labor force is constant, if the number of employed workers in a country decreases, the unemployment rate in the country will increase 4. The zero lower bound refers to...
State whether the following statement is True, False, or Uncertain. Be sure to explain your answer....
State whether the following statement is True, False, or Uncertain. Be sure to explain your answer. In the basic market-clearing model, a permanent parallel upward shift in the production function causes aggregate output to increase, the interest rate to rise, and the real demand for money to fall.
1.Suppose Zusanna's current GDP is $400 billion and that it has a savings rate of .3,...
1.Suppose Zusanna's current GDP is $400 billion and that it has a savings rate of .3, a depreciation rate is .1, and a capital to output ratio of 3. If the World Bank wants Zusanna to grow at 7% next year, and believes in the Harrod-Domar, then it should give $__________ of financial aid (to the nearest billion). 2.For the Harrod-Domar model to work it must be the case that dollars of development aid increase (consumption, savings, trade) _____,, and...
Explain why this false: A particular firm has decreasing returns to scale at all levels of...
Explain why this false: A particular firm has decreasing returns to scale at all levels of output. If it was divided into two smaller firms that each use exactly half the amount of all inputs compared to the original firm (but are otherwise identical), and prices remained constant, the combined profits of the two smaller firms would be less than the profit of the original firm.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT