Question

1. If we take the production function and hold the level of output constant, allowing the...

1. If we take the production function and hold the level of output constant, allowing the amounts of capital and labor to vary, the curve that is traced out is called:

A. the total product
B. the average product
C. an isoquant
D. the marginal product
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: option c) isoquant

An isoquant is a contour line drawn through the set of the point at which the same quantity of output is produced while changing the quantities of two or more inputs. Isoquants shows that a firm has the ability to substitute between the capital and labour in order to produce the same level of output.

Isoquants show the combinations of factors which produce the same level of output. Isocost shows the all combinations of inout that costs same. and when isocost and isoquant become tangent it shows optimal level of input for the cost minimization problem of firms.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a production function Y=zF(K,Nd) Which of the following properties we assume for F? 1. Constant...
Consider a production function Y=zF(K,Nd) Which of the following properties we assume for F? 1. Constant returns to scale. 2. Output increases with increases in either the labor input or the capital input 3. The marginal product of labor decreases as the labor input increases. 4. The marginal product of capital decreases as the capital input increases. 5. The marginal product of labor increases as the quantity of the capital input increases. A) 1,2,3,4 and 5 B) 1,2,3 and 4...
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...
Suppose that the production function has the form ?=?∙√?+? where y is output, A is a...
Suppose that the production function has the form ?=?∙√?+? where y is output, A is a positive constant, ? is labor input, and B is another constant which may be positive, negative or zero. a) Graph the level of output, ?, versus the quantity of labor input, ?. b) Is the marginal product of labor positive? Is it diminishing in ?? c) Describe the wealth and substitution effects from an increase in the coefficient ?. d) Describe the wealth and...
A firm uses capital and labor to produce output according to the production ? = 4√??...
A firm uses capital and labor to produce output according to the production ? = 4√?? (a) Find the marginal product of labor (MPL) and marginal product of capital (MPK). (b) If the wage w=$1/labor-hr. and the rental rate of capital r=$4/machine-hr., what is the least expensive way to produce 16 units of output? (c) What is the minimum cost of producing 16 units? (d) Show that for any level of output, q, the minimum cost of producing q is...
Consider the following production function Y=z*(a*K + (1-a)*N) where z represents total factor productivity, a is...
Consider the following production function Y=z*(a*K + (1-a)*N) where z represents total factor productivity, a is a parameter between 0 and 1, K is the level of capital, and N is labor. We want to check if this function satisfies our basic assumptions about production functions. 1. Does this production function exhibit constant returns to scale? Ex- plain 2. Is the marginal product of labor always positive? Explain 3. Does this function exhibit diminishing marginal product of labor? Ex- plain...
Suppose a firm’s production function is given by Q = L 1/2 , K 1/2. a)...
Suppose a firm’s production function is given by Q = L 1/2 , K 1/2. a)   Suppose the firm has a fixed cost FC=6, the price of labor is w = 64 and the price of capital is r = 4. Derive the firm’s total cost function, TC(Q). b)   What is the firm’s marginal cost? c)   Graph the firm’s isoquant for Q = 20 units of output. On the same graph, sketch the firm’s isocost line associated with the total...
Bonus Question. Suppose the production function for a firrm is Q(K,L) = K1/2L1/2, so the marginal...
Bonus Question. Suppose the production function for a firrm is Q(K,L) = K1/2L1/2, so the marginal product of labor is MPL = 1 2 K1/2L−1/2 and the marginal product of capital is MPK = 1 2 K−1/2L1/2. a) Find the equation of the isoquant for Q = 1. That is, when Q = 1, find L as a function of K or K as a function of L to obtain an equation for the isoquant. b) Find K1, K2, L3,...
1. Use the following information on a hypothetical short-run production function to answer questions a-c. Units...
1. Use the following information on a hypothetical short-run production function to answer questions a-c. Units of Labor/Day      5       6       7       8       9 Units of Output/Day    120    140    155    165    168 The price of labor is $20 per day. Ten units of capital are used each day, regardless of output level. The price of capital is $50 per unit. a. Calculate the marginal and average variable product of each unit of labor input. b. Calculate total, average total, average variable,...
10) The relationship between the output produced in an economy, the input of factors of production,...
10) The relationship between the output produced in an economy, the input of factors of production, and the state of technological knowledge is called the A) aggregate supply function B) aggregate production function C) aggregate investment function D) marginal product of labor 11) Assume you deplete your savings to buy a new sofa and then take a vacation in a foreign country. Which of the following is true? A) consumption will increase B) net exports will increase C) government purchases...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT