Use graphics to show that, as long as the prices for factors of production remain unchanged,...
Use graphics to show that, as long as the prices for factors of production remain unchanged, the average cost always drops no less than 50% when production function changes from F1(K, L)= min{αK,βL} to F2(K, L)=αK +βL for any positive coefficients α and β.
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Use graphics to show that, as long as the prices for factors of
production remain unchanged,...
4. A firm produces computers with two factors of production: labor L and capital K. It's...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is y 10 . Suppose the factor prices are wL = 10 and wk = 100. (a) Graph the isoquants for y equal to 1,2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer,...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is ....
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is . Suppose the factor prices are wl = 10 and wK = 100. (a) Graph the isoquants for y equal to 1.2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer, how many...
Q2 please！ (ii) Does the slope of your long-run total cost curve correspond to your (iii)...
Q2 please！
(ii) Does the slope of your long-run total cost curve correspond to your (iii) Explain why, at any output level, the long-run total cost is always less than prediction in Part (2) or equal to the short-run total cost. Long-run marginal cost curve On Curve Sheet C, draw the long-run marginal cost curve. (7) (8) (i) (ii) Long-run average cost. On the attached Curve Sheet C, draw the long-run average cost curve. Explain why, at any output level,...
What reference? Name: For each of the following events, use an AD-AS diagram to show the...
What reference?
Name: For each of the following events, use an AD-AS diagram to show the short-run and long-run effects on output and the price level (inflation rate); identify any output gap. Assume the economy starts in long run equilibrium. (1) The government reduces income taxes AS P AD (2) A decrease in consumer confidence leads to lower consumption spending AS P. AD AD-AS practice assignment.pdf 2/2 (3) The Fed decreases the money supply AS Pe K AD y* (4)...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity...
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....
1. Explicit costs ______. do not involve outlays of cash are greater than implicit costs involve...
1. Explicit costs ______. do not involve outlays of cash are greater than implicit costs involve outlays of cash are less than implicit costs 2. Opportunity costs can vary from person to person and ______________________. can be calculated easily most of the time can even be different for the same person at different points in time are always known and predictable represent explicit costs only 3. An example of an implicit cost would be ______. transportation expenses salaries rental costs...
In the tree to the right, assume that the ancestor had a long tail, ear fape, claws. Based on the tree and assuming that all evolutionary changes n A. long tail, ear flaps, external testes, and f...
In the tree to the right, assume that the ancestor had a long tail, ear fape, claws. Based on the tree and assuming that all evolutionary changes n A. long tail, ear flaps, external testes, and fixed claws traits does a sea lion have? these traits are shown, what B. short tail, no ear flaps, external testes, and fixed claws C. short tail, no ear flaps, abdominal testes, and fixed claws tail, ear flaps, abdominal testes, and fuxed claws long...
competitive firm is the . 4. the vert Mive is atroduction. The short-run supply curve of...
competitive firm is the . 4. the vert Mive is atroduction. The short-run supply curve of ortion of its short-tun marginal cost curve that is competitive firm in the above its average variable cost curve, The o ward sloping an u petitive firm is the portion of its short-run marginal cost curve that supply curve of a Leuward-sloping and lies above its long-run average cost curve. Example: A firm has the long-run cost function cy) = 2y + 200 for...
True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The...
True/False (1 Point each) 1) When bond prices decrease, their yields to maturity increase. 2) The best forms of money and financial systems enjoy the benefits of trust, belief, and stability. 3) A fundamental function of a commercial bank is to take in deposits and make loans. 4) Traditional banks operate with low margins and high leverage. 5) Rates on bonds issued by a government can be negative. 6) ) The default risk premium is the same as the credit...
Predatory Pricing Which of the followings is not the purpose of predatory pricing? A To drive...
Predatory Pricing Which of the followings is not the purpose of predatory pricing? A To drive competitors out of a market B To prevent entry by potential rivals C To increase its own market power O D to increase output and lower prices Economies and Diseconomies of Scale When a firm gets so large that coordination and management of workers and other inputs becomes costly and difficult, it is experiencing which of the following? O A Diseconomies of scale O...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is y 10 . Suppose the factor prices are wL = 10 and wk = 100. (a) Graph the isoquants for y equal to 1,2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer,...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is . Suppose the factor prices are wl = 10 and wK = 100. (a) Graph the isoquants for y equal to 1.2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer, how many...
Q2 please！
(ii) Does the slope of your long-run total cost curve correspond to your (iii) Explain why, at any output level, the long-run total cost is always less than prediction in Part (2) or equal to the short-run total cost. Long-run marginal cost curve On Curve Sheet C, draw the long-run marginal cost curve. (7) (8) (i) (ii) Long-run average cost. On the attached Curve Sheet C, draw the long-run average cost curve. Explain why, at any output level,...
What reference?
Name: For each of the following events, use an AD-AS diagram to show the short-run and long-run effects on output and the price level (inflation rate); identify any output gap. Assume the economy starts in long run equilibrium. (1) The government reduces income taxes AS P AD (2) A decrease in consumer confidence leads to lower consumption spending AS P. AD AD-AS practice assignment.pdf 2/2 (3) The Fed decreases the money supply AS Pe K AD y* (4)...
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....
In the tree to the right, assume that the ancestor had a long tail, ear fape, claws. Based on the tree and assuming that all evolutionary changes n A. long tail, ear flaps, external testes, and fixed claws traits does a sea lion have? these traits are shown, what B. short tail, no ear flaps, external testes, and fixed claws C. short tail, no ear flaps, abdominal testes, and fixed claws tail, ear flaps, abdominal testes, and fuxed claws long...
competitive firm is the . 4. the vert Mive is atroduction. The short-run supply curve of ortion of its short-tun marginal cost curve that is competitive firm in the above its average variable cost curve, The o ward sloping an u petitive firm is the portion of its short-run marginal cost curve that supply curve of a Leuward-sloping and lies above its long-run average cost curve. Example: A firm has the long-run cost function cy) = 2y + 200 for...
Predatory Pricing Which of the followings is not the purpose of predatory pricing? A To drive competitors out of a market B To prevent entry by potential rivals C To increase its own market power O D to increase output and lower prices Economies and Diseconomies of Scale When a firm gets so large that coordination and management of workers and other inputs becomes costly and difficult, it is experiencing which of the following? O A Diseconomies of scale O...
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