A production function: Select one: a. is determined only by the expenditures on R&D. b. defines...
A production function:
Select one:
a. is determined only by the expenditures on R&D.
b. defines the minimum amount of output that can be produced with inputs such as capital and labor.
c. defines the average amount of output that can be produced with inputs such as capital and labor.
d. represents the technology available for turning inputs into output.
Homework Answers
The correct option is d.) represents the technology available for turning inputs into output.
A production function represents the technology available for turning inputs into output. It is the maximum amount of output that can be produced with the given amount of resources. Therefore, option b and c are incorrect. Option a is incorrect as production is not only determined by the expenditure on R&D.
Thus, the d is the correct option.
Add Answer to:
A production function:
Select one:
a. is determined only by the expenditures on R&D.
b. defines...
1. Suppose that a firm's production function of output Q is a function of only two...
1. Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 25LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for capital would be: wQ A) K = 25r B) K = C) K- 25r wQ rQ 25w 25w rQ 25wQ D) E) KE
Production with One Variable Input The following table provides data related to the production technology of...
Production with One Variable Input The following table provides data related to the production technology of a firm that use only two inputs – labor and capital – to produce output. In the short-run, the firm’s capital stock is fixed. Amount of labor input Amount of output Amount of capital input Average product of labor Marginal product of labor 0 0 10 1 15 10 2 40 10 3 70 10 4 95 10 5 110 10 6 120 10...
Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using one worker and two units of capital. If the firm has an extra worker, say two workers, and no more capital, it still can produce only one unit of
Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using one worker and two units of capital. If the firm has an extra worker, say two workers, and no more capital, it still can produce only one unit of output. Similarly, an extra unit of capital does the firm no good.a) Draw the isoquants for this production function.b) Draw the total product, average product, and marginal product of labor curves (you will...
Which of the following statements is not true about the production function? A) It gives the...
Which of the following statements is not true about the production function? A) It gives the maximum output that can be obtained for a given level of inputs. B) A new production function does not have to be developed when there is technical progress since technology is included in the function. C) The production function depends upon the level of technology available to the firm. D) It specifies the cost of inputs necessary to produce a certain level of outputs.
All firms produce according to a Cobb-Douglas production function. This production function should look familiar to...
All firms produce according to a Cobb-Douglas production function. This production function should look familiar to you. It says that output Q is related to inputs K and L as: This production function implies that the cost-minimizing demand for capital will be Ou where w is the wage rate, r is the cost of capital, Q is output level, and α and β are parameters We will assume that α + β 1; this is the constant-returns-to-scale assumption we saw...
please help. Question 8 Which of the following best defines production capacity? A. The minimum capital...
please help.
Question 8 Which of the following best defines production capacity? A. The minimum capital required by an organization O B. The minimum cost of production incurred by an organization or industry C. The maximum amount of output of an organization or industry D. The maximum amount of factors of production required to produce a product Moving to another question will save this response
A firm’s production technology is given by the production function q 0.25 LK where L...
A firm’s production technology is given by the production function q 0.25 LK where L represents labor hours, K machine hours and q the amount of output. The market wage and rental rates are, w= $16 and r = $256. The firm is operating in the long run where it can adjust both inputs. Suppose that the firm currently is using ten labor hours for each machine hour. Is it minimizing its long run total cost? If so why...
A production function exhibits constant returns to scale if: Doubling all inputs delivers exactly twice the...
A production function exhibits constant returns to scale if: Doubling all inputs delivers exactly twice the output. Doubling all inputs delivers exactly more than twice the output. Doubling all inputs delivers exactly less than twice the output. none of the above The marginal product of capital (MPK) is: The additional unit of output that is produced when both labor and capital are increased by one unit. The additional output that is produced when there is technological improvement. The additional output...
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L...
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative numbers tell in terms of the amount of labor...
Touchie MacFeelie publishes comic books. The only inputs he needs are old jokes and cartoonists. His production function is Q = J1/2 * L3/4
Touchie MacFeelie publishes comic books. The only inputs he needs are old jokes and cartoonists. His production function is Q = J1/2 * L3/4, where J is the number of old jokes used, L the number of hours of cartoonists’ labor used as inputs, and Q is the number of comic books produced.1) Touchie MacFeelie’s irascible business manager, Gander Mac-Grope, announces that old jokes can be purchased for $1 each and thatthe wage rate of cartoonists’ labor is $2.(a) Suppose...
1. Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 25LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for capital would be: wQ A) K = 25r B) K = C) K- 25r wQ rQ 25w 25w rQ 25wQ D) E) KE
All firms produce according to a Cobb-Douglas production function. This production function should look familiar to you. It says that output Q is related to inputs K and L as: This production function implies that the cost-minimizing demand for capital will be Ou where w is the wage rate, r is the cost of capital, Q is output level, and α and β are parameters We will assume that α + β 1; this is the constant-returns-to-scale assumption we saw...
please help.
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