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.

Full explanations would be appreciated! 25) In a short-run production process, the marginal cost is rising and the average variable cost is falling as output is increased. Thus, A) marginal cost is below average fixed cost. C) average fixed cost is constant. B) marginal cost is below average variable cost. D) marginal cost is above average variable cost. 26) A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. The marginal product of labor is 3, and the marginal product of capital is 5. The firm A) could reduce the cost of producing its current output level by employing more labor and less capital. B) could reduce the cost of producing its current output level by employing more capital and less labor. C) could increase its output at no extra cost by employing more capital and less labor. D) is producing its current output level at the minimum cost. E) Both B and D are true.

All of these statements about the production function are true EXCEPT a) the curve features 3 distinct regions: increasing returns to scale, constant returns to scale, and diminishing returns to scale. b)the curve's shape matches and its description of the interaction between the graph's axes represents the law of diminishing returns c) it can be applied to many economic markets d) one variation is used to show the difference between firm and market specific risk

A firm’s production is represented by the following function: Q = L1/4 K3/4 . The rental rate of capital (r) is $40 and the wage rate (w) is $12.a. For a given level of output, what should be the ratio of capital to labor in order to minimize costs?b. How much capital and labor should be used to produce 400 units of output? What is the total cost?c. What is the short run total cost if output is decreased to 300 units?d. How would the capital labor choice and total cost change in the long run?e. Would the firm prefer to relocate if input prices are r = 60 and w = 8 at an alternativelocation assuming relocation is costless?

The short run is the time frame A) during which the quantities of all resources are fixed. B) during which all costs are implicit costs. C) that is less than a year. D) during which the quantities of some resources are fixed. E) during which the quantities of all resources are variable.

The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space).   Quantity Average Cost Total Cost Total Revenue 0  -- 0 $0 1 $15 15 $10 2 $9 18 $20 3 $8 24 $30 4 $8.50 34 $40 5 $9 45 $50 6 $10 60 $60 7 $12 84 $70   The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible?   Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…

Consider the following marginal cost function MC= 5 + 2qi. (a) Does the production process exhibits increasing returns? decreasing returns? constant returns? (b) If the price is $23. What’s the optimal production level? (c) If the price is $31. What’s the optimal production level?

Your average total cost is $30; the price you receive for the good is $15. Should you keep on producing the good? Why? You should produce in the long run as long as you are only earning small economic losses. It is always possible to make up a small loss. Maybe. It depends on whether you are covering average variable costs in the long run. You should not produce in the long run because you are earning an economic loss. All inputs are variable in the long run so you can go out of business. You should continue producing in the long run because you are earning an economic profit.

Suppose a firm’s short-run cost curves were found to be: Total Cost = SRTC = 1 + 2Q + Q2 Marginal Cost = SRMC = 2 + 2Q, Where Q is output. Assume the firm behaves as a price taker and sells its output at P = K8 per unit. (a) If the firm maximizes profits, how much will it produce? (b) What are the marginal, average and total cost at that point? (c) What is the firms’ profit?