Which of the following statements is the least likely to be true? A) Automation requiring significant capital investment will bring immediate increase in short run profits. B) Automation enables firms to reduce the number of their workers in the short run. C) Automation enables firms to produce goods for lower costs, through significant economies of scale.

Q: e) The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: The short-run cost function of a company is given as: Total Cost: TC = 200 + 55q where; TC = total…

Q: The graph that shows the relationship between quantity produced and total costs is called ……………… a)…

A: The quantity of something a human, machine, or industry produces from production or Manufacture is…

Q: Suppose you as a business person find that the price of your product is less than minimum average…

A: The shutdown point is defined as the intersection of the average variable cost curve and the…

Q: 3) Suppose a production function is y = x,2 x,1, and w, is the ice of x, and w, is the price of x,…

A: y = x11/2x21/3 y/x1 = MP1 = (1/2)x11/2- 1x21/3   MP1 =   (1/2)x1- 1/2x21/3   y/x2 = MP2 =…

Q: Suppose a firm produces a single output with technology, q = √(x1 + x2) where q is output, and x1…

A: Understanding the Firm's Production and CostsThis analysis explores a firm's production process and…

Q: Exercise: A firm produces output according to the following production function: q = A K1/4 L1/4 The…

A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…

Q: What is the short-run shutdown price, the price below which the firm chooses to shut down…

A: Shut Down price: In the short run as the firm faces the total fixed cost as well. And a firm will…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: The optimal level of labor and capital is given by the point where the marginal rate of technical…

Q: The data below shows a tabulation on the production of a hypothetical product:   Output (Q) Total…

A: Given Data: Output (Q) Total Cost 0 25 1 32 2 38 3 42 4 48 5…

Q: Which of the following is an explicit cost? The opportunity cost of an owner/entrepreneur’s time…

A: An explicit cost is an out of pocket expense that is incurred in the course of production of a good…

Q: Which of the following is an example of an implicit cost? Group of answer choices A)Federal taxes…

A: Implicit cost is such a cost that shows factor cost owned by entrepreneur himself and also known as…

Q: Problem 3* A competitive firm has the following production function: f(L,K) = min {L, K}. Suppose…

A: The production function is given as w = 2r = 4

Q: A cost-minimising firm produces output (q) using capital (K) and labour (L) with the production…

A: The marginal product of labor (MPL) and capital (MPK) measures the additional output produced by…

Q: Question A5 For a particular product, Marginal Cost (MC) = Q + 5. Find an expression for Total Cost…

A: "Marginal cost is addition to the total cost when more unit of output is produced and it is obtained…

Q: A company finds that at an output level of 9 units, its total cost is $1700 and at an output level…

A: Given information is: Total cost of 9 units: $1700 Total cost of 10 units: $2000 To find: Value of…

Q: A firm operates with the production function Q=2L+4K. The firm has target production of 420 units of…

A: Answer: Given, Q=2L+4K Target production = 420 units K = 80 units (short-run) w (wage) = $100 r…

Q: b) Suppose a business faces a production function which is of the Cobb-Douglas form: Q(L, K) = ALªKB…

A: We have cobb double production function with alpha and beta as parameters.

Q: Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: You are a manager of an advertising company. The company is running short of funds, so you decide to…

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

Q: Which option does not cause Economies of scale?       Specialization         High…

A: Economies of scale refer to the cost advantage that a business obtains due to expansion. As the…

Q: As a manufacturer of hats, you are producing 10 hats using 16 capital and 7 labour. The price of…

A: Production is a process in which inputs are transformed into final goods and services. The major…

Q: Which of the following is likely to be the least important factor for firms in determining…

A: Production is an activity that employs labor, capital, products, and services as inputs to generate…

Q: double check once you accept

A: Approach to solving the question: Detailed explanation:Part (a): Deriving the Conditional Input…

Q: Consider the following production function: Q = (1-x-1)yk. Assume we are dealing with the short run,…

A: A production function is a concept used in economics to describe the relationship between inputs…

Q: The measure of the cost of a particular good in terms of what is given up to produce that good is…

A: The costs reflect the amount of dollars that a business firm must use to carry out its production…

Q: A firm has the production function f(x1, x2) - In(x₁) + In(x₂). It operates in perfectly competitive…

A: Production function : It represents  the  relationship between inputs ( x1 and x2)  and output…

Q: Consider the table below that describes the costs associated with producing a good (Q). Q Total…

A: Marginal cost of Q is equals to TC (Q) - TC(Q-1) So, MC(Q=2) = TC(Q=2) - TC(Q=1)

Q: . A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK…

A: When the ratio of labour and capital prices equals the marginal rate of technical substitution of…

Q: Assume the following production function: q = √k + √l a) Determine the cost function and the…

A: Cost is minimized when MPL / MPK = w/r MPL = ∂q/∂l = (1/2) / (l1/2) MPK = ∂q/∂k = (1/2) / (k1/2)…

Q: Which of the following is wrong? Select one: a. Economies of scale refer to the production of two or…

A: Long run average cost curve is locus of minimum point of the short run average cost curve.

Q: A company discovers that their total cost is $1700 at an output level of 9 units and $2000 at an…

A: Given: The total cost for a company at output level of 9 units is = $1,700 The total cost for a…

Q: Daniel's Artworks faces a short-run total cost of production given by: - TC = Q³ – 12Q² + 100Q +…

A: Daniel's short-run total cost: Short-run marginal cost: The market price of artwork is $60. The…

Q: Which of the following statements is correct?

A: The returns to scale represents by how much the total output increases if all the inputs used in…

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

A: The average total cost(ATC) can be defined as the cost per unit of output of a commodity, it is…

Q: b) Suppose a business faces a production function which is of the Cobb-Douglas form: Q(L,K) = AL“ K®…

A: Given output is a function of A, L and K. When we scale all factors of production in a given…

Q: Production function: q= 3.2f+0.2fl+1.6l f is the amount of fertilizer l is the hours of labor…

A: We use the formulas: Total Revenue = Price*Quantity  Total Profit = Total Revenue - Total Cost

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: Economic cost can best be defined as

A: The economic cost is the mix of misfortunes of any merchandise that has a worth joined to them by…

Q: The cost of producing � units of stuffed alligator toys is �(�)=0.004�2+10�+4000. Find the marginal…

A: Marginal cost refers to an additional cost that is incurred due to producing one more unit of…

Q: Suppose a firm uses a single input to produce a single output according to a production function…

A: The process of producing goods and services to suit human needs is known as production. A product is…

Q: a) Explain what is meant by the terms marginal cost and sunk cost in production theory, and give…

A: In economics, the marginal cost of production is the adjustment of complete production cost that…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.