A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of crop. If it had doubled its land and labor, production would have been 325,000 bushels. Does it have constant, decreasing, or increasing returns to scale?

Q: Explain the influence of costs in the short run on a firm's output

A: Short-run is a period of time when there is some cost which cannot be varied.

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: H8. Which of the following production functions exhibit(s) constant returns to scale?​I. Q = Min…

A: There are CRS if the doubling the all inputs result in the double of output.

Q: Explain difference between Returns to Scale Returns to Factor.

A: The difference between returns to scale and returns to factors is as follows:-

Q: Suppose that a firm producing furniture will be delivering 200 tables annually for many years to…

A: Given that labour and capital are the two inputs used in the production of furnitures. Therefore,…

Q: Draw an isoquant-isocost diagram consistent with points A and B on the long-run average cost curve…

A:

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: For a firm, constant returns to scale occur when the for the firm AFC ATC MC as the quantity…

A: ATC, or average total cost, is a term used in economics and business. It's a statistic used to…

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

Q: A firm's production function follows: Q = 2 * (K^0.5) * (L^1.9) Where, in the short run, capital is…

A: production function shows the maximum production which can be produced with given level of inputs.

Q: Please define the long cost curve and the short run cost curve in your own words but not more than…

A:

Q: A firm with only fixed costs will have which of the following average cost relationships? As…

A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…

Q: How are increasing returns to scale for a long-run production function and a downward sloping…

A: The increasing returns to scale means that the output is rising in a larger fraction than the rise…

Q: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC)…

A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost…

Q: T have equipment that makes it most efficient to have two or three people to help with bottling…

A: The total output or quantity increases at an increasing rate at first when the number of labor…

Q: Write a short note on Law of diminishing returns – implications for the short-run cost curve

A: Law of diminishing return to scale implies that as the number of a variable input is raised keeping…

Q: Which of the following production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given:  There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

Q: Why can the distinction between fixed costs and variable costs be made in the short run?

A: Understanding the difference between fixed costs and variable costs is important for settling on…

Q: For a firm, what does the production function represent? the concept of diminishing marginal product…

A: The concept of diminishing marginal product states that as the number of workers increases the…

Q: Quantity Total Fixed Cost 0. 60 60 60 115 4 60 130 6. 60 160 8. 60 200 10 60 250 Using the above…

A: Fixed costs (FC) are costs incurred during production that are not dependent on the quantity of the…

Q: Suppose that a firm is currently operating producing 100 units at a total cost of $2,000. If they…

A: Economies of scale is when the increase in output decreases the long run average cost.Diseconomies…

Q: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

Q: Can a firm have diseconomies of scale, econmies of scale and constant returns to scale

A: Economies of scale is when the ATC decreases with the increase in quantity.  Diseconomies of scale…

Q: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false?

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

Q: t does the Long Run Average Cost curve depict?     a) It depicts the relationship between Average…

A: Average cost of production is the per unit cost of production. AC = TC/Q The minimum efficient scale…

Q: Consider a short run production function q=7L+K  using L units of labour and K units of capital.…

A: Consider a short-run production function q=7L+K  using L units of labour and K units of capital. 1)…