Constant returns to scale refers to: a. a proportionate rise in one primary factor of production leading to the same proportionate rise in all other primary factors of production b. a proportionate rise in both primary factors of production leading to the same proportionate rise in output c. a proportionate rise in one of the primary factors of production leading to the same proportionate rise in output d. a proportionate rise in secondary factors of production leading to the same proportionate rise in output

Q: (a) A company production function is: Q=7K³L5 + 2(m Where Q is the quantity produced, L is the…

A: Production function: Here, K and L are inputs and m is a constant.First-order partial derivatives of…

Q: Explain the characteristics of production in the short term vs the long tem in terms of factors of…

A: Production refers to the process of combining various material inputs and immaterial inputs (plans,…

Q: rease in average

A: Economies of scale are the cost advantages being reaped by companies when production in turn becomes…

Q: Respond to the question with a concise and accurate answer, along with a clear explanation and…

A: Returns to Scale: Returns to Scale refers to the proportional change in output that occurs in…

Q: Economies to scale refer to Select one: a. the point at which marginal cost equals average cost.…

A: "Long-run average cost curve is used to determine the scale of production process."

Q: Whenever a firm increases both its labor and capital by 2 percent, and as a result, output increases…

A: Economies of Scale:Economies of scale refer to the cost advantages that a firm can achieve when it…

Q: Explain the expansion path when it is an increasing return to scale using graph and numbers. What…

A: To explain the expansion using the increasing returns to sale shows that by combining capital and…

Q: What is the total output changes due to changes in all inputs in the same proportion is called as?…

A: In the field of financial matters, especially in the creation hypothesis, understanding how the…

Q: 1. Suppose the production function for sea waters during a particular period is represented by…

A: Q = F(K,L) = 6000 K2 L2 - 1000 L3This is a given production function which explains the relationship…

Q: Do the following functions exhibitnincreasing, decreasing or constant returns to scale. Ensure to…

A: Returns to scale is a concept in economics that describes the relationship between the change in…

Q: Explain how the stages of production are determined. Give information about the shape and slope of…

A: A production function shows the unique relationship between inputs and outputs. It shows the maximum…

Q: 1. Define the concept of constant returns to scale. 2. Why does it make economic sense to assume…

A: CRS is an economic concept that describes a situation where a proportional increase in the inputs…

Q: true or false: suppose a company has short term production function is 1 1 y = xx .3 so, total…

A:

Q: If there are diseconomies of scale within a given range of output, which of following is(are) TRUE?…

A: Diseconomies of scale are the cost disadvantages that occur when firms increase their scale of…

Q: True or false The Law of Diminishing returns implies that the marginal cost of production (MC) is…

A: Answer:  Law of diminishing returns: According to the Law of diminishing returns if an input of…

Q: Which of the following statements is true?   If inputs are doubled and output doubles, this is…

A: Increasing returns to scale: It occurs when the change in output is greater than the change in…

Q: A firm is currently producing such that: MPL = 30 W = 10 MPK = 20 To minimize the cost of…

A: Marginal productivity of capital is when an additional unit of capital is engaged in this scenario,…

Q: Question 2)  Which of the following production functions is decreasing return to scale? (Q:Total…

A: To determine whether each of the given production functions exhibits decreasing returns to scale, we…

Q: (a) What is meant by a firm's expansion path? (b) Name and explain the curve that can be produced…

A: Expansion path could be a graph which shows how a firm's cost minimizing input mix changes because…

Q: y= l^0.5 + k^0.5 is a production function that exhibits a/an?  a. increasing returns to scale  b.…

A: Production function shows the relationship between the inputs used and output produced.  Constant…

Q: Explain the expansion path when it is an increasing return to scale using graph and numbers. What…

A: To explain the expansion path when it is an increasing return to scale: When the production expands…

Q: Determine whether the following production function exhibits increasing, constant or decreasing…

A: The production of goods, and services is done by the business firms in the economy. The firms tend…

Q: What do constant returns to scale indicate that a firm is experiencing? an increasing marginal…

A: please find the answer below.

Q: 1. Imagine an economy with a constant returns to scale production function. Answer the following:…

A: Constant returns to scale refers to that technology /production function in which the output changes…

Q: The maximum output that can be produced for a given amount of input is called a: A. discrete…

A: The maximum output refers to the highest level of output that can be achieved with a given amount of…

Q: 1. For each of the following production functions, determine whether there areincreasing, constant…

A: A production function shows the maximum level of output that can be produced with the help of…

Q: The teohnically efficient combiaation of two products a business cän produce in the current period…

A: Economics is a social science that describes human behavior regarding their unlimited wants in terms…

Q: Q7. Provide your own examples for the questions below. a. An example for economies of scale using…

A: Economies of scale occur when the average cost of production decreases as output increases.…

Q: .ConsiderthsCobb-Dougas production function：Y=K"L".What does this function exhibit? a.Diminishing…

A: Given    Production function: Y=K"L" Increasing return to scale: If all inputs are increased by λ…

Q: 7. Which of the following production models exhibit(s) constant returns to scale? A. Y = K + L B. Y…

A: Constant returns to scale is a state of production where increase in output is proportionally equal…

Q: 1. Relation of A and T curves *3* As the level of production increases in the short-run, the Average…

A: As total fixed cost remains constant, the average fixed cost which is  TFC/Q keeps on decreasing…

Q: QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob.…

A: Diminishing marginal returns is a law of economics that states that as more and more units of a…

Q: (a) Will the envelope curve be tangential to the bottom of each of the short-run average cost…

A: 3. (a)Long run average cost (LAC) is called envelop curve because it  envelops all short run average…

Q: A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing…

A: According to the law of diminishing returns when more units of variable input are used with a fixed…

Q: hen a production function exhibits constant returns to scale, it means that: A. a proportional…

A: Constant returns to scale production function means that the production function is…

Q: A company produces a single, high-volume product. One year its production volume was 780,000 units,…

A: Here, given information is: Production volume in a year: 780,000 units Fixed cost: Php 160 million…

Q: The production function q = 22K.0.6 L\ deg. 5 exhibits. A. decreasing returns to scale. • B.…

A: In economics, a production function is a means of examining the relationship between input and…

Q: 2. The production is given by Y= 2L+K. The firm currently produces 200 units a. Graph an isoquant…

A: b) MPL =dY/dL = 2 MPK = dY/dK = 1  what is TRS could you elaborate  MRTS = MPL/MPK  = 2

Q: Regarding the production function of the table, indicate if there are constant, increasing or…

A: Returns to scale is a key concept in economics that examines at how variations in production scale…

Q: Is it possible to obtain increasing returns to scale if all factors of production are subject to…

A: Returns to scale indicate the changes in output in relation to the changes in the input. The three…

Q: ECONOMICS UPVOTE WILL BE GIVEN. PLEASE CHOOSE THE CORRECT ANSWER. NO LONG EXPLANATION NEEDED.  A…

A: Production cost is the main component to decide the level of production and price of goods. It is…