QUESTION 13 The short term is a period of time: O of one year or less where a firm can finish one project and start on another is a period of time where all inputs become variable where the firm makes its greatest profit
Q: 12 true or false The point at which the marginal product of a variable input is at a maximum…
A: The production function is a border or frontier that denotes the greatest quantity of output that…
Q: A firm trebles its inputs and discovers that its output rises by a factor of four. Assuming constant…
A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…
Q: мса 13 Assuming no change in input prices, if the marginal productivity of labour falls as…
A: Here, it is given that the marginal productivity of labor falls as the production of output rises…
Q: (5) Consider the Cobb-Douglas production function f(x1, x2) = Axqx½. (a) For what valucs of a and b…
A: ANS When the rise in the amount of output(o/p) is more than the rise in the amount of input (i/p)…
Q: 13. Suppose you have a production technology given by f(x1,x2) = min{2r1, r2} and you are producing…
A: In a market, when a firm produces a product, it requires various input resources like labor, raw…
Q: QUESTION 9 The slope of the iso-cost curve O a. Depends on the marginal productivity of the inputs…
A: Iso-cost curve: It can be defined as the combination of labors and capital used for production of…
Q: Question 12 What will be the effect of a technology that cuts the production process by 25% on its…
A: (12). In this question, technology reduces the production process by 25% on its output, assuming all…
Q: 18. If a firm increases all of its inputs by 10 percent and its output increases by 10 percent,…
A: When an increase in inputs causes a proportionate increase in the output it is encountering constant…
Q: 3. Determined whether each statement is true or false and provided an explanation. A. If a firm has…
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Q: 12. If a firm doubles all inputs and this causes output to more than double, we can say that: A.…
A: If a firm more than doubles its output by double all of its inputs, the firm is in increasing…
Q: Answer the attached question
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The figure below depicts the production function of grain for farmers under average growing…
A: In a year of a bad drought, the production curve can turn downward for a large number of farmers.…
Q: Exhibit 7-3 A marginal product curve 200 150 Marginal 100 product 50 MP 0 1 2 3 45 6 7 8 9 10 11 12…
A: Answer: Correct option: option 4 (more than 5 workers per day) Explanation: Law of diminishing…
Q: 1. Suppose a chair manufacturer is producing in the short run (with its existing plant and…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: true or false: suppose a company has short term production function is 1 1 y = xx .3 so, total…
A:
Q: SCENARIO 1: You are the owner and only employee of a company that writes computer software that is…
A: Answer - Need to find - Economic cost in a year Given in the question - Revenue is $90,000. Cost…
Q: 25. Molly operates a factory with a production function given by Q(K, L.) = L+ 4K, where K is…
A: The production function of a firm shows the maximum amount of output a firm is able to produce by…
Q: 1.Assume that a firm experiences constant returns to scale over twenty-five percent of its output…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 40 35 Output 30 25 20 15 10 5 1 2 3 4 5 6 Labor The diagram above shows the production function for…
A: Here, the production function bis a firm is represented graphically using which one can compute…
Q: QUESTION 3 Explicit costs are and implicit costs are O Paid in money; incurred when a firm gives up…
A: In a market, firms bear two types of cost that are implicit cost and explicit cost. These cost are…
Q: 13) Consider a technology exhibiting diminishing MRTS. If capital is fixed, but a firm varies labor…
A: Answer: Diminishing MRTS: Marginal rate of technical substitution refers to the change in capital…
Q: 6. The cost that a firm incurs in hiring or purchasing any factor of production is referred to as A.…
A: The amount that is being paid by an individual for purchasing a good or service is known as cost.…
Q: a. Is it possible to have diminishing returns to a single factor of production and constant returns…
A: Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: 13. If a firm's production function is given by Q = K0.3L03 then it exhibits a. Decreasing returns…
A: Q = K0.3L0.3 where we take α = 0.3β = 0.3
Q: 18. If a firm increases all of its inputs by 10 percent and its output increases by 10 percent,…
A: The law of returns to scale is a long run concept where all the factors are variable. For simplicity…
Q: Suppose that a business incurred implicit costs of $300,000 and explicit costs of $1,300,000 over…
A: Accounting profit can be defined as a profit, which a firm gets after paying only the explicit cost.…
Q: 6. Consider the following Cobb - Douglas utility function: U = χαγβην *Note, it should be assumed…
A:
Q: 3. Suppose the firm's production function is given by F(K,L) = min (Kt,Lt) (a) Derive the long-run…
A: The fixed proportion production function, f(K,L) =Q= minK13,L13 In this production function, the…
Q: 8. siuppose that the manager of a firm operating in a competitive market has estimated the firm's…
A: (a) Average Variable cost (AVC) is multiplied by the quantity (Q) to get variable cost (VC). Total…
Q: QUESTION 8 Which of the following statements concerning the relationships between total product…
A: We can answer this question using subsequent graph of the Total Product, Marginal Product and…
Q: 1. Assume that Ms. Desdimona, the owner, and manager of the Fine Duplicating Service located near…
A: The total product is the total quantity of output produced by using all the inputs and resources.…
Q: 45. The short run A. O Is less than one year B. O Requires that at least one input is fixed C. O…
A: Labour includes physical and mental effort by humans throughthe use of human capital (education,…
Q: 1. Assume that the production of wine requires land (T) and labor (L) and it follows diminishing…
A: The diminishing returns to scale means that each added input (labor) will result in a decreasing…
Q: .1. With the aid of appropriate graphs, explain the relationship between the Law of Diminishing…
A: Law of Diminishing returns is Law of production theory which is applicable in short run. Production…
Q: Question 5: Suppose a brewery uses a Cobb-Douglas production function for his production. He studies…
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Q: Capital (K) Labor (L) Total Product (TP) Average Product (AP) Marginal Product (MP) 10 0 0…
A:
Q: Assuming a firm has this short-run production data below, do the following: a. fill-in the rest of…
A: MPL=∆TP∆LAPL =TPLTFC = Php2000 x KTVC = Php 700 x LTC = TFC + TVCMC = ∆TC∆QAFC = TFCQAVC = TVCQATC…
Q: Bob's production function is Q = x,0.338695x20.129865 where x1 = quantity of labor and x2 = quantity…
A: The average cost curve is the total cost divided by the total number of quantities produced. Both…
Q: Economic profits differ from accounting profits because O a all of the mentioned Ob. the former is…
A: Economic and accounting profits differ due to the concept of accrual of cost.
Q: 1. The value of the inputs owned and used by a firm is an explicit cost. O a. True O b. False
A: When a firm makes production activities, there are different type sof cost associated with this…
Q: 3 Production Function with Two Inputs Assume that a firm choose K and L inputs. At the start of a…
A: Cobb Douglas production function Q=LαKβTC=WL+rK
Q: Consider this production function. Study hours 1. 21 3 4. 10 11 12 13 14 15 or more 6 8. 6. Grade o…
A: Average Product is the total product per unit of output. Marginal Product is the additional amount…
Q: Q1. Define fixed and variable costs of production. Why do you think bigger firms may have lower…
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Q: Question 5 If a firm wants to increase output, the law of diminishing returns implies. a. Average…
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- If all of the firms in an industry are making positive economic profit, what does it mean for those firms? O The firms accounting profit the firms" opportunity cost O The firms' explicit cost firms' opportunity costWhat is the difforence between acounting proft and economic prof? OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts. OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit coste OG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costs OD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.un x SCC PortalGuard -SCC Portal Lo X Assignments: Microec onomics Chapter 12 HW ect.mheducation.com/flow/connect.html Saved In the News: What's Behind Starbucks' Price Hike? The Coffee Company Will Raise Drink Prices in October, Even as Other Chains Crowd the Market with Similar (and Cheaper) Products Starting on Cctober 3, the prices on lattes, cappuccinos, drip coffee, and other drinks will go up 5 cents at company-operated stores in North America. Starbucks is also jacking up the price of its coffee beans by roughly 50 cents per pound, or an average of 3.9 percent. The timing is certainly odd. For a while now, Starbucks has been struggling with labor disputes. Rivals McDonald's, Dunkin' Donuts, and Canadian restaurant chain Tim Horton's are steaming into its turf.... A Confident Company If Starbucks were really worried about any of these issues, the last thing its senior execs would consider is a price hike. In fact, Starbucks' dominant market position gives it unique pricing…
- onsider the table below and assume the market price is $35 per unit. Totalproduct Totalfixed cost TotalVariablecost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantitydemanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.(1) Would you characterize Industry 4.0 as arevolution or more of an evolution? Why? (2) Whymight various companies have an interest inpromoting Industry 4.0 as a conceptual “brand”?Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
- Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural MonoployWould you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?In class we talked about clothing makers that concentrate (cluster) around a button maker. Figure 1 below is a graph that we drew. I have labeled the curves ambiguously (1 and 2) on purpose. The variable N represents the number of firms in the cluster. 5 Use this information to answer the questions below. Figure 1 Curve 1 -Curve 2 N
- Suppose that a particular industry has a four-firm concentration ratio of 45 and a Herfindahi index of LS40. Most ikety, this industry would ochieve Mutipie Chaice both productive efficiency and allocative etficency wllocative efficency but not productive effcency nether productive efficiency nor allocative efficiency productive efficiency but not allocative efficiencyYou own a printing firm. Two of yoursenior managers provide you with advice. Thefirst manager states that your company islosing money for every unit that is printed. Tominimize losses, she advises that you reduceyour production levels. The second managerstates that if your firm sells some more units,the price will cover your increase in costs. Inorder to reduce losses, the second managerrecommends that you should increaseproduction. Explain which manager iscorrect and who is offering the correctadvice?MN 00 25 Price %24 Question 42 of 60 > For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 20. 16 Demand MR 40 Quantity O $20: 25 O $16: 25 O $32; 25 O $20; 40 10:55 PM 74 F 12/12/2021 Ins prt sc delete home 12 Oy 114 dn 6d pue 144 91 & backspace wnu lock 5. 7. 4. home 6d T. enter H. pause ↑ shift 2. LE ctrl alt Sut