The Principle of Diminishing Returns Apply the principle of diminishing returns. 4.1 Consider the example of Xena’s copy shop. Adding a second worker increased output by 300 pages. If she added a third worker, her output would increase by fewer than          pages.

Q: Calculate total profits in this hypothetical economy: Units of capital: 100 Units of labor: 200 W:…

A: Ans. Total profit is the difference between total revenue and total cost.       Total profit = Total…

Q: Use the following data to answer the question. 14 Total Product Inputs of Labor 1. 22 2. eBook 3.…

A: Average product is the total quantity of output per unit of labor input.

Q: Draw the total physical product curve on graph below. . Beyond what number of workers do diminishing…

A: Here we have to find,  A firm produces good X with just two factors such as capital and labour .…

Q: 1. Marginal product of capital and labor in a CRS Cobb-Douglas production function 2. Second…

A: The production function depicts the technical association between the quantities of output (Q) that…

Q: 4. Given the equation for the Cobb-Douglas production function Y = AK"L'- where 0< a < 1, A 2 0, K 2…

A: Cobb Douglas Production function: Y = AKα L1-α. Where Y is output; A is total factor productivity; K…

Q: The Paunch Burger restaurant chain currently produces 250,000 units of output by using 2,400 units…

A: Answer -    MRTS (Marginal rate of technical substitution) :- The rate by which one factor need  to…

Q: Economics Complete the table below. (Round your answers to two decimal places.) Capital, Labor, K L…

A: Fixed cost remains same at all levels of output. Variable cost is the cost that changes as output…

Q: State how is the law of diminishing returns reflected in the shape of total product curve? What is…

A: Law of diminishing returns: It refers to the theory under which when the company will produce less…

Q: Example about isoquants and isocost curve

A: Total cost:  The total cost refers to the sum total of fixed costs and variable costs that are used…

Q: Critically review the key characteristics of the Isoquants curve.

A: The Iso-product or Iso - quants curves represent the different combinations of two inputs to…

Q: What is the marginal product of the fourth worker? The Production Function and Marginal Product…

A: The marginal product(MP) is the change(∆) in output(q) when additional inputs are added in a firm.…

Q: The following table gives the output achievable for various combinations of inputs. There are only…

A: Isoquant shows all the possible combinations of inputs that provide the same amount of output.

Q: What is the concept map of the Law of Diminishing Returns to a Factor?

A: The law of diminishing returns explains that if one input in the production of a commodity is…

Q: Explain the law of diminidhing returns whith a relevant example

A:

Q: Which of the following statements is (are) correct? (x)  Economists distinguish between short run…

A: Short run and Long run are related to the time period of a business or firm.

Q: What is the difference between a feasible production plan in the short run and in the long run? Give…

A: Feasible production plan in the short run: In the short run, even though the firm is facing loss, it…

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: 1. Marty's Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university town.…

A: a.Fixed input:Fixed input refers the quantity do not change as quantity of output changes, which is…

Q: 4.7 When to Use the Principle of Diminishing Returns? You are the manager of a firm that produces…

A: Return to Scale: The return to scale refers to the behavior of output when there is a change in all…

Q: Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for…

A: Total product is calculated in the below table. When labor increase from two to three workers, the…

Q: The degree of convexity of an isoquant determines the degree of substitutability of factors of…

A: Answer: An isoquant shows the locus of two factors that yield the same level of output on an…

Q: a. Is it possible to have diminishing returns to a single factor of production and constant returns…

A: a. The diminishing marginal returns to factor indicates the reduction in the marginal product of…

Q: Using the information given in Table 5.2 (page 136), draw the isoquant correspond- ing to an output…

A: Using the information in the table the isoquant corresponding to the output level 20 is shown below…

Q: Margeʹs Hair Salon production function is Q = f(K, L) = K0.5L0.5 where K is the number of hair…

A: Here we have:- Margeʹs Hair Salon production function is Q = f(K, L) =K0.5L0.5 where K is the number…

Q: Money cost and the real cost don't coincide"? Comment on this statement

A: There are a lot of costs involved while producing a good or service. Some are explicit costs like…

Q: A company produces children's toys. The manager noticed the connection between the number of…

A: Since we only answer up to 3 sub-parts, we will answer the first 3. Please resubmit the question and…

Q: What is the  Short run and long run period in the production function of the economics

A: In simple words we can say that the Short run period in the production function of the economics…

Q: When it comes to the question on how long the short run is (in the context of production and cost),…

A: Factors of production: - The inputs that are used to produce goods and services are known as the…

Q: If the marginal product of capital decreases, what happens to the IS curve? (a) It shifts outward.…

A: The extra output, return, or profit provided per unit by edges from production inputs is spoken as…

Q: You have fulfilled your dream by buying a McDonald’s franchise. You start hiring employees and come…

A: This occurs due to the Law of Diminishing Returns. According to this law, as more and more units of…

Q: According to data from the Longitudinal Survey of Companies of 2017, labor productivity in Chile is…

A: Disclaimer: Since you have asked multiple questions, we will solve the first question for you. if…

Q: The fast food company Schnabb uses labor and capital to produce its product. Holding the production…

A: Profit maximisation is a firm's financial goal. If its total output remains fixed in the near run…

Q: Draw labeled graph according to the question: The change in the optimal capital-labor ratio if both…

A: If both the inputs(labour and capital) are perfect complements in production, they are to be used…

Q: Select the statement that is true. An isoquant divides the set of input bundles into three regions,…

A: In a market, a research will deal with various economic concept and to analyze all the concept it…

Q: Q2. Define marginal physical product of labor (MPP) and marginal cost of product (MC). How are these…

A: Marginal Cost(MC) is defined as an addition to total variable cost(TVC) when 1 extra unit of output…

Q: In a Cobb Douglas production function the marginal prod a. the quantity of labor increases. b. the…

A: In economics and econometrics, the Cobb–Douglas production function is a particular functional form…

Q: a. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the…

A: The three criteria can be explained as: The convex shape isoquant- The nature of the production…

Q: What do economists mean by "deminishing returns" to an input? What causes diminishing returns? Where…

A: Diminishing Returns It means when we employ one additional unit of variable factor then the marginal…

Q: Q2. Given a production function Q =f (K, L) = K+ 2L, both capital and labour are doubled, does this…

A: A production function shows the relationship between the inputs used and the output produced in a…

Q: 1. What is the fixed input use in this production? 2. What is the variable input use in this…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: We can describe inputs as either fixed or variable. Thinking about a company that assembles cars,…

A: In the production process, some of the resources are considered as fixed while others are variable…

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.