A very long run is a time horizon in which not only can all the factors of production change, but factors beyond the control of the firm can also change and have consequences for the firm’s production function. So, a very-long-run consideration that could change a firm’s production function is an improvement in education that increases the quality of the economy’s labour force.
Question 16 (1 point) A very-long-run consideration that could change a firm's production function is size...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...
Given the following long run production and cost functions: 4 = 1/3K2 C = 15L + 3K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? HTML Editora
Given the following long run production and cost functions: q=LPK1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? Clearly type out your answer to parts (A), (B) and (C) in the space provided. Retain all of your handwritten work for this question to be uploaded separately after you have completed the...
Given the following long run production and cost functions: q=L3K1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change?
all of them Question 7 (1 point) If the long-run average cost is upward sloping, the firm is experiencing decreasing returns diseconomies of scale Oincreasing costs all of the above none of the above Question 8 (1 point) A production function in economics means any function performed by an employee when producing output the various functions performed by all employees when producing output the function performed by the person in charge of the production process the relationship between inputs and...
These two question please Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
When a firm increases its plant size in the long run and its per-unit costs fall, this is called A. diminishing returns, and is shown by the downward-sloping portion of the MP curve (or the upward-sloping portion of the MC curve). B. constant returns to scale, and is shown by the flat portion of the LRATC curve. C. diseconomies of scale, and is shown by the upward-sloping portion of the LRATC curve. D. economies of scale, and is shown by...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity of output, K is the quantity of capital and L is the quantity of labor. If capital is fixed at 10 units in the short run then the short-run production function is: Q=10KL b. Q=50KL? Q=10L? d. 0=50L Q=500KL 8. For a linear total cost function: a. MC will be downward sloping b. MC = AVC c. AVC is upward sloping and linear d....
Consider the production function given by y = f(L,K) = L^(1/2) K^(1/3) , where y is the output, L is the labour input, and K is the capital input. (a) Does this exhibit constant, increasing, or decreasing returns to scale? (b) Suppose that the firm employs 9 units of capital, and in the short-run, it cannot change this amount. Then what is the short-run production function? (c) Determine whether the short-run production function exhibits diminishing marginal product of labour. (d)...
QUESTION 30 A downward-sloping portion of a long-run average total cost curve is the result of: economies of scale. diseconomies of scale. diminishing returns. the existence of fixed resources. 2.5 points QUESTION 31 In the long run, firms in many industries often experience a falling average total cost curve as a result of: gains through trade. increasing marginal returns. economies of scale. lower fixed costs. 2.5 points QUESTION 32 A large aircraft manufacturer, like Boeing, may have a...