The production function for good X in the table below exhibits increasing marginal returns to capital overwhat outout range?Production Function for Good XChoose Multiple Choice:Between o and 1,524Between 2391 and 3,048Between o and 2,991• Between 3,016 and 2,945L*MPx= (AQ/AK)AP=(Q/K)Marginal Product ofAverage Product ofLaborCapitalOutputCapitalCapital10575.75.702032426.716.203065733.3401,07241.526.80501,52445.230.48601,97645.232.93702,39141.534.162,72433.334.859e2,991A33.2310e3,0485.730.4811e3,016-3.227.421202,945-7.124.54

The production function for good X in the table below exhibits increasing marginal returns to capital over what outout range? Production Function for Good X Choose Multiple Choice: Between o and 1,524 • Between 2,391 and 3,048 • Between O and 2,991 Between 3,016 and 2,945 L* MP= (AQ/AK) AP=(Q/K) Marginal Product of Capital Average Product of Capital Labor Capital Output 10 57 5.7 5.70 20 324 26.7 16.20 30 657 33.3 40 1,072 41.5 26.80 50 1,524 45.2 30.48 60 1,976 45.2 32.93 9. 70 2,391 41.5 34.16 2,724 33.3 34.05 9e 2,991 A 33.23 1e0 3,848 5.7 30.48 110 3,016 -3.2 27.42 120 2,945 -7.1 24.54

The production function for good X in the table below exhibits increasing marginal returns to capital over what outout range? Production Function for Good X Choose Multiple Choice: Between o and 1,524 • Between 2,391 and 3,048 • Between O and 2,991 Between 3,016 and 2,945 L* MP= (AQ/AK) AP=(Q/K) Marginal Product of Capital Average Product of Capital Labor Capital Output 10 57 5.7 5.70 20 324 26.7 16.20 30 657 33.3 40 1,072 41.5 26.80 50 1,524 45.2 30.48 60 1,976 45.2 32.93 9. 70 2,391 41.5 34.16 2,724 33.3 34.05 9e 2,991 A 33.23 1e0 3,848 5.7 30.48 110 3,016 -3.2 27.42 120 2,945 -7.1 24.54

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 3 1 4 3 2 90 3 3 160 3 4 200 3 5 230 3 6 250 3 7 260 3 8 265 A firm has the following production function: Q=f (L/K). It must pay $20 per hour of labor and rents its fixed inputs (K) for $30 per unit. Complete the following table and answer the questions that follow:
6
2. Consider a production function: x(l, k) = Alªk³. Showing all of your work: (a) Under what conditions are the marginal products of labor 1 and capital k positive? (b) Under what conditions are the returns to labor and capital diminishing? (c) Under what conditions are the returns to scale increasing, decreasing, and constant?
1. The following production function is used to produce wheat, q, from capi- tal, K, and labour, L: q = f(K, L) = «³K/3 + B³L/3 a) Describe the role of a and B in this production function. b) Derive the slope of an isoquant for this production function and in- terpret your result. Draw the isoquant in (K L) space, labeling where appropriate. The drawing does not need to be exact, but the curvature needs to be approximately correct. Explain why under- standing the curvature is so important. | c) Does this production function follow the "Law of Diminishing Marginal Returns"? Show your work and explain your answer.
Consider the following production function: Q = 100L0.5K0.5 Subject to the budget constraint 5L + 10K = 75; where L is labour and K is capital. If the optimal quantities of labour and capital were employed, then the total output is approximately: a. 530 units b. 1371 units c. 2150 units d. 604 units
Maize is produced according to the production function q = 100(K°*L°) %3D Starting with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing. (i) (ii) Compute the marginal rate of technical substitution of labour for capital. (iii) Does this production function exhibit increasing, decreasing or constant returns to scale?
Consider the production function from earlier: Quantity of Haircuts 20 15 10 0+0 0 N 2 8 14 O Increasing marginal productivity O Constant marginal productivity O Decreasing marginal productivity 3 19 23 Labor (hours) 27 26 Total Product Curve From 1 labor hour up to 7 labor hours, what sort of marginal productivity does this production function have?
Consider the following production function for shirts: q = v6 L3/4K/4, where L is worker-hours, and K is sewing machine-hours. a. Compute the marginal products of labor and capital, the average product of labor, and the marginal rate of technical substitution of labor for capital (i.e. how many units of capital are needed to make up for the loss of one unit of labor)? b. Are there diminishing returns to labor (that is, does the marginal product of labor decrease when labor L increases)? What about to capital? Is there diminishing marginal rate of technical substitution (MRTS)? с.
QUESTION 39 The folllowing table shows data for a simple production function. Capital (K). Labor (L) 10 0 10 1 10 2 3 4 5 6 10 10 10 10 TP or Q AP MP 6 14 20 14 8 Assume that the cost of capital, PK, is $50 per unit, and the cost of labor, PL, is $100 per unit. Marginal cost, MC, is at minimum when labor, L, is equal to O2 units. O4 units. O 3 units. 5 units.
8. If a firm has a production function of the form: Q = L0.5K2, what can we conclude? (a) The firm has a quasi-concave production function and will experience constant marginal returns to labour and increasing marginal returns to capital. (b) The firm has a quasi-concave production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital. (c) The firm has a convex production function and will experience increasing marginal returns to labour and increasing marginal returns to capital. (d) The firm has a convex production function and will experience constant marginal returns to labour and increasing marginal returns to capital. (e) The firm has a linear production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital.
13. Suppose you have a production technology given by f(x1, x2) = min{2x₁, x2} and you are producing at the point where x₁ = 10 and x₂ = 20. (a) Explain in words what we mean (generally) by the ‘marginal product' of an input in production. (b) For the production technology in this question and the initial point x₁ = 10 and x2 = 20, what is the marginal product of a small increase in input 1? (c) Suppose input 2 increases and you are now at the initial point x₁ = 10 and x2 = 30. Relative to your answer in part (b), does the marginal product of input 1 decrease, increase, or stay constant? Explain briefly.
The law if diminishing marginal returns is the rate at which one input maybe substituted for another input in the production process? True False