1. State , and explain in detail, whether you agree or disagree with the followingeach)(a) The CES production function exhibits non-increasing returns to scale.(b) Let f be a homothetic technology. It must therefore be true that if x and x' can bothproduce y units of output, then 2x and 2x' can both produce 2y units of output.(c) If a firm's technology exhibits non-decreasing returns to scale, it also exhibits increasingreturns to scale.(d) For all functions homogeneous of degree 1, the ratio of partial derivatives ishomogeneous of degree zero.(e) The profit function is non-decreasing in output prices.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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QUESTION 13 In the ideas sector production function, AA ZAL at, there are A. decreasing returns to the ideas stock and labor. O B. constant returns to scale. OC. increasing returns to the ideas stock and labor. O D.decreasing returns to the ideas stock but increasing returns overall. O E. Increasing returns to the ideas stock but decreasing returns overall. CIVIB Control
1. Relation of A and I curves *3* As the level of production increases in the short-run, the Average Variable Cost (AVC) curve (increases continuously/first decreases and then increases/decreases continuously) and the Average Fixed Cost (AFC) curve (increases continuously/first decreases and then increases/decreases continuously). Increases continuously; decreases continuously. First decreases and then increases; decreases continuously. First decreases and then increases; increases continuously. Decreases continuously; decreases continuously. Increases continuously; first decreases and then increases. Save & Continue Continue without saving
M/c question - Micro 21)For a firm, what does the production function represent? A. the relationship between quantity of output and total cost B. the relationship between implicit costs and explicit costs C. the relationship between quantity of inputs and quantity of output D. the relationship between quantity of inputs and total cost 20) In the long-run, what happens to inputs? A. Inputs that were fixed in the short run become variable B. Inputs that were variable in the short run will decrease C. Inputs that were variable in the short run will increase D. Inputs that were fixed in the short run remain fixed
Quantity of capital (million S) $20 $10 100 200 Quantity of labor (person-years) line ab line ac line bc none of above Isoquant II (200,000 keyboards) Isoquant (100,000 keyboards) FIGURE 4-1 Isoquants for a Fixed-Coefficient Production Technology With constant returns to scale, the isoquants will be L-shaped and the production function will be the straight line through their minimum-combination points. According to Figure 4-1, which line refers to the most efficient input mix for production?
When a production function exhibits constant returns to scale, it means that: A. a proportional increases in all inputs leads to the same proportional increase in output B. all of the above C. the marginal products of all inputs are constant D. the RTS (of L for K) is constant
Show and explain the relationship between total product, average product and marginal product.
Given a production function with a specific amount of fixed resources and one variable resource, which one of the following statements is correct?A The maximum average product occurs at peak production.B Increasing returns to variable input only occur with increasing production.C The y-intercept (i.e. the output at zero input) is equal to the fixed resourcesD Production may increase even when the marginal product is negative.E The marginal product increases until the point of inflexion.
There are three factors of production, capital, K skilled labour Le and unskilled labour Ly. Which of the following production functions exhibits constant returns to scale in the production inputs K, L5 and Ly? C a. ab 4 ab 2(ab+3e) Y= Ka+6lab+c) La+2(3ab +c)+4c a+2(ab+3c)+4ab O b. All of these answers are correct. ac Y= Ka+b+bc L, a+b+bc L. a+b+bc O d. blb-e) b-e Y= K*+b?-L,+b?-L a+b- b>c Oe. 1-a a(1-a) 1-a 0
QUESTION 9 Assume the following for a given production function: • If inputs = 1 then total output = 5 If inputs = 2 then total output = 8 The example above depicts which concept? a. Expanding Marginal Product b. Constant Marginal Product c. Diminishing Marginal Product O d. Growth and Development
Answer both please
ФЫВАПРОЫ В А ПРО ПДЗАПРОЛДЫВАПРО ЯЧСМИТВЧСМИТЬБСМИТЬБЮ ЯЧСМИТЕ SOLVE STEP BY STEP IN DIGITAL FORMAT Regarding the production function of the table, indicate if there are constant, increasing or decreasing returns to scale; Which of these points are on the same isoquant?; Is the law of diminishing returns to scale operating? ЗК 2К 1К 80 70 50 1L 120 100 70 2L 150 120 80 3L ИЦУКЕНГШУКЕНГШщЖЕНГШЩЗХЪЙЦУКЕНГ
1. Is it possible to obtain increasing returns to scale if all factors of production are subject to diminishing marginal productivity?

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1. State, and explain in detail, whether you agree or disagree with the following each) (a) The CES production function exhibits non-increasing returns to scale.