In a production process, all inputs are increased by 10%; but output increases less than 10%....
In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences
A) decreasing returns to scale.
B) constant returns to scale.
C) increasing returns to scale.
D) negative returns to scale
Homework Answers
Answer is option A)
DRS
so when all inputs rise by 10% , but output rises by less than 10%,
Then it is case of DRS
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In a production process, all inputs are increased by 10%; but
output increases less than 10%....
1 pts In a production process, all inputs are increased by 10%; but output increases less...
1 pts In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences: o negative returns to scale. o decreasing returns to scale. O constant returns to scale. o increasing returns to scale.
__B__ 48. Economies of scale a. require inputs' MPP to fall as output increases (everything else...
__B__ 48. Economies of scale a. require inputs' MPP to fall as output increases (everything else equal). b. pertain to the long run only. c. refer to increased output generalized by an increase in the quantity of a single input. d. imply that the AC curve will fall continuously as output increases in the short run. __D__ 49. If in some production range average cost is rising, the firm is experiencing a. increasing returns to scale. b. decreasing returns to...
10. Consider a firm that increases its inputs by 15 percent. For each scenario, state whether...
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Morgan and Doyle have a business. The production function for that business can be described by the following expressi...
Morgan and Doyle have a business. The production function for that business can be described by the following expression: Y=LL2, where L = hours of work put in by Morgan and L2 = hours of work put in by Doyle. This production function exhibits: O constant returns to scale. increasing returns to scale, i.e., when doubling all inputs increases output by more than double. decreasing returns to scale, i.e., when doubling all inputs increases output by less than double. O...
all of them Question 7 (1 point) If the long-run average cost is upward sloping, the...
all of them
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A firm uses two inputs x1 and x2 to produce output y. The production function is...
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output y. The production function is given by f(x1, x2) = p
min{2x1, x2}. The price of input 1 is 1 and the price of input 2 is
2. The price of output is 10.
4. A firm uses two inputs 21 and 22 to produce output y. The production function is given by f(x1, x2) = V min{2x1, x2}. The price of input 1 is 1 and the price...
Suppose a firm doubles the amount of all of its factors of production and, as a result, output increases from 100 to 300...
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Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of...
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of output. b. is always equal to or greater than short-run average total cost. c. can be measured in the short-run. If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a long-run marginal cost is at its minimum point b. long run average cost is at its minimum point. c long...
A production function exhibits constant returns to scale if: Doubling all inputs delivers exactly twice the...
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1 pts In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences: o negative returns to scale. o decreasing returns to scale. O constant returns to scale. o increasing returns to scale.
10. Consider a firm that increases its inputs by 15 percent. For each scenario, state whether the firm experiences economies of scale, diseconomies of scale, or constant returns to scale. a) Outputs increase 15 percent b) Outputs increase by less than 15 percent: c) Outputs increase by greater than 15 percent: 11 A fim's lang-nus talcosts are even in the table below Long run average total cost(s) Long-run total cost ($) 24 28 30 34 40 48 Output 7 63...
Morgan and Doyle have a business. The production function for that business can be described by the following expression: Y=LL2, where L = hours of work put in by Morgan and L2 = hours of work put in by Doyle. This production function exhibits: O constant returns to scale. increasing returns to scale, i.e., when doubling all inputs increases output by more than double. decreasing returns to scale, i.e., when doubling all inputs increases output by less than double. O...
all of them
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A firm uses two inputs x1 and x2 to produce
output y. The production function is given by f(x1, x2) = p
min{2x1, x2}. The price of input 1 is 1 and the price of input 2 is
2. The price of output is 10.
4. A firm uses two inputs 21 and 22 to produce output y. The production function is given by f(x1, x2) = V min{2x1, x2}. The price of input 1 is 1 and the price...
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