24. A specific production process can be represented by the production function,f(x1, x2) = (x 1/2 + x 1/3) 3.A. How much x₁ could the firm give up if it wanted to use 1 extra unit of x2and still wanted to produce an identical level of output?B. Labeling everything and being precise, draw the isoquant corresponding toq = 4.= 9.C. On the same graph, draw the isoquant corresponding to qD. Between the isoquants you just drew, does the production technologydisplay decreasing, increasing, or constant returns to scale?E. Analytically determine whether the production process has global returns toscale that match your local results from part D. Recall that in order to claimglobal returns to scale, your result must hold for ALL possible values of x1and x2.

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

24. A specific production process can be represented by the production function, f(x1, x2) = (x 1/2 + x 1/3)³. A. How much x₁ could the firm give up if it wanted to use 1 extra unit of x2 and still wanted to produce an identical level of output? B. Labeling everything and being precise, draw the isoquant corresponding to q = 4. C. On the same graph, draw the isoquant corresponding to q = = 9. D. Between the isoquants you just drew, does the production technology display decreasing, increasing, or constant returns to scale? E. Analytically determine whether the production process has global returns to scale that match your local results from part D. Recall that in order to claim global returns to scale, your result must hold for ALL possible values of x1 and x2.

24. A specific production process can be represented by the production function, f(x1, x2) = (x 1/2 + x 1/3)³. A. How much x₁ could the firm give up if it wanted to use 1 extra unit of x2 and still wanted to produce an identical level of output? B. Labeling everything and being precise, draw the isoquant corresponding to q = 4. C. On the same graph, draw the isoquant corresponding to q = = 9. D. Between the isoquants you just drew, does the production technology display decreasing, increasing, or constant returns to scale? E. Analytically determine whether the production process has global returns to scale that match your local results from part D. Recall that in order to claim global returns to scale, your result must hold for ALL possible values of x1 and x2.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.1P

See similar textbooks

Similar questions

Present a graph of the following. Label your graphs completely1. Using the isoquant map and isocost, show that combination M is the optimum combination of inputs and not combinations E and L.
***There are FOUR parts to the question, all based around the same given data...please answer and explain each and note where graphs are needed*** Given: A farmer raises apples using land (K) and labor (L), and has an output of ?(?,?)= ?0.5?0.5 bushels of apples. a. Find several input combinations that give the farmer 6 bushels of apples. Sketch the associated isoquant on a graph, with L on the x-axis and K on the y-axis. b. In the short run, the farmer only has 4 units of land. What is his short-run production function? Graph it for values of L from 0 to 16, with L on the x-axis and output on the y-axis. What is the name of the slope of this curve? c. Assuming the farmer still only has 4 units of land, how much extra output does he get from adding 1 extra unit of labor if he is already using only 1 unit of labor? How much extra output does he get from adding 1 extra unit of labor if he is already using 4 units of labor? d. In the long run, the farmer can change both his…
Ebba Kantzen says the following: "I am currently producing 10,000 pizzas per month at a total cost of $50,000. If I produce 10,001 pizzas, my total cost will rise to $50,011. Therefore, my marginal cost of producing pizzas must be increasing." ( 1.) Using the point drawing tool, indicate the point of marginal cost. Label this point "Marginal cost." 2.) Using the point drawing tool, indicate the point of average total cost. Label this point "Average total cost." Carefully follow the instructions above, and only draw the required objects. Costs(dollars per pizza) (5.95,0) MC Quantity (pizzas per month) points ATC
Refer to the graph below: y2 The graph above illustrates a production set of a firm. (a) Which assumption(s) do(es) the production set violates? Explain. (b) Suppose the firm decided to scale all inputs up or down by some amount t > 0. What will happen to the level of output?
Please explain how you decide what level of outputs you produce given a fixed level of an input. Show this on a graph.
Explain the difference between economies of scale and economies of scopewith an example.
Write about the production function with two and more than two variables
***QUESTION HAS FOUR PARTS - ALL PARTS MUST BE ANSWERED TOGETHER AS THEY ARE DEPENDENT ON EACH OTHER*** 1. A farmer raises apples using land (K) and labor (L), and has an output of ? (?,?) = ? 0.5 ? 0.5 bushels of apples. a. Find several input combinations that give the farmer 6 bushels of apples. Sketch the associated isoquant on a graph, with L on the x-axis and K on the y-axis. b. In the short run, the farmer only has 4 units of land. What is his short-run production function? Graph it for values of L from 0 to 16, with L on the x-axis and output on the y-axis. What is the name of the slope of this curve? c. Assuming the farmer still only has 4 units of land, how much extra output does he get from adding 1 extra unit of labor if he is already using only 1 unit of labor? How much extra output does he get from adding 1 extra unit of labor if he is already using 4 units of labor? d. In the long run, the farmer can change both his amount of land and his amount of labor. Suppose…
Paper:Mate: gorlain 15. A company is planning to manufacture mountain bikes. The fixed monthly cost will be $100,000 and it will cost $100 to produce each bicycle. Write the cost function, C, of producing x mountain bikes. а. b. Write the average cost function, C, of producing x mountain bikes. Find C(500), Č(4000). c. d. What is the horizontal asymptote for the graph of the average cost function, C? Describe what this means in practical terms. МАТ 171 Section 2.6 Lab Page 2 of 4
hi Suppose you build bird houses. One day, you double the time you spend building and double the wood, nails, paint, and all the other inputs in order to build twice as many bird houses. What kind of production function is this? options: increasing returns to scale constant returns to scale decreasing returns to scale zero returns to scale
for these two graphs answer the following question what is the fixed cost?
Refer to the table below. How will the marginal cost curve look like if you draw it? Units of Output Total Cost 10 20 20 40 30 60 40 80 50 100 60 120 Select one: a. upward sloping b. downward sloping c. horizontal d. vertical