which one is true If a firm uses 10 units of labour and 20 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product must be 0.25. or If a firm uses 10 units of labour and 30 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product must be 0.25

Q: The production function of a firm is f: R2 → R, (L, K) H→ 10L + 16K – 2L? – K?, and the per unit…

A: Production function : 10 L  + 16K - 2L2 - K2 Let the cost of capital (K) be (r) & cost of labor…

Q: a) Why is the marginal product of a variable input like labour likely to increase initially in the…

A: Ans. (a).  Marginal Product is defined as the change in total out total output caused due to an…

Q: Q4.Suppose we are given the constant returns to scale (CES) production function q={ßa+aa }1/a a.…

A: The production function determines all the input bundles that produce the same output level.The…

Q: A firm has the production function f(x,y)=x0.90.8. This firm has O constant returns to scale.…

A: The production function is:- f(x,y) = (x^0.9) * (y^0.8)

Q: A firm's production function follows: Q = 2 * (K^0.5) * (L^1.9) Where, in the short run, capital is…

A: production function shows the maximum production which can be produced with given level of inputs.

Q: The production function y = 0.8X1X2 exhibits returns to scale. Constant Increasing Decreasing O…

A: y=0.8X1X2Now, Substitute X1=2X1 and X2=2X2Thus,y=0.8(2X1)(2X2)y=0.8*4*X1X2y=4*0.8X1X2y=4(y) ....…

Q: Define different average cost functions in the short run production. What are the shapes of the…

A: Short run production is a production cycle when atleast one of the factors of production is fixed.…

Q: q = VKL where q is the produced quantity, K is the level of capital used in production and L is the…

A: 20. According to the question ,  q = (KL)1/2…

Q: If capital and labour are perfect complements then the marginal products of capital and labiour are…

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

Q: What is the marginal product of labor? the average output of a unit of labor the total output…

A: Since there is no proper question associated with the first image, providing the solution for second…

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: The cost-minimizing amount of labor refers to the level of employment where a firm achieves its…

Q: The following table gives total output or total product as a func- tion of labor units used. LABOR…

A: Given Labor Total Output Marginal Output 0 0 0 1 5 5 2 9 4 3 12 3 4 14 2 5 15 1

Q: Grease Tech produces oil changes. The production of oil changes relies on both capital (K) and labor…

A: Marginal Product of capital is the additional output that is produced by hiring an additional unit…

Q: The following graph shows the marginal and average product curves for labor, the firm's only…

A: Marginal cost defines the additional cost incurred by producing one more unit of a good or service,…

Q: Question 7 The production function is f(x,x)=x¹2x¹2₂. a. In the short run the amount of factor 2…

A: Since you have posted a question with multiple sub-parts, we will solve the subparts asked by you.…

Q: 3) What is the Marginal product of Labor in the production function Q=2K^(1/3) L^(1/3) if Kis fixed…

A: Marginal product is the change in Total product due to an additional labor hired.m=> MP = Change…

Q: Assume that a firm has the following production function: q = L0.5K0.6 a. Calculate output when L =…

A: Given  Production function: q=L0.5K0.6    ......(1) Here L is labor and K denotes capital.  To…

Q: 9-100L0.8 K0.4 Given the production function above assume that capital is fixed at 20 units.…

A: As given Production Function is q = 100L0.8K0.4 Also capital is fixed at 20 units that means K = 20

Q: Please no written by hand and no emage Consider the production function q = min{ l /2 , k/ 3 }.…

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

Q: We often work with production technologies that give rise to initially increasing marginal product…

A: Production technology:True, because the slope of the production frontier is equal to the marginal…

Q: What property does it display? O increasing returns diminishing returns O constant returns O…

A: A production function is a mathematical equation that describes the relationship between the…

Q: 1. Which of these production functions have diminishing marginal returns to labor? A) F(K, L) = K +…

A: The marginal product of labor (MPL) is the additional output generated when one more unit of labor…

Q: Production function Q=100K^0.5L^0.5 .During the last production of Tyres the following inputs of 100…

A: The production function is a means of examining the relationship between input and output values.…

Q: When the marginal product of labor increases, marginal cost tends to A) increase. B) decrease. C)…

A: A production function illustrates the relationship between the quantity of inputs used and the…

Q: The production function of a firm is given by q = 2x,075x20.5, The marginal product of x2 is: o…

A: Marginal product refers to the additional output that is produced using additional factors of…

Q: What is the average product doing when the marginal product is decreasing? Why?

A: Average Product (AP): Average product represents the average output produced per unit of input. It…

Q: The marginal product of the variable input O is equal to the total product divided by the total…

A: Marginal product is increase in total product due to using additional unit of variable input.

Q: Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of…

A: since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: 900- 800- 700- 600- 500- 400- 300 200- 100- 400 800 1200 1600 2000 2400 2800 Number of farmers

A: The marginal product refers to the change in the total output when the one additional unit of labour…

Q: Number of Workers Number of Chairs 1 10 2 18 3 24 4 28 5 30 6 28 7 25 a. Calculate the average and…

A: The average product of labor is derived by dividing the total product by the inputs. It is also…

Q: 1. Assume that a firm has the following production function: q = L0.50.6 d. Determine, both, the…

A: The production function is the equation describing the relationship between the quantities of…

Q: 2.4 Draw the isoquants and find the cost function corresponding to each of the following production…

A: We are given four different production functions, each with different forms. We are tasked…

Q: Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of…

A:

Q: Question 1. Suppose a small firm employs Capital (K) and labour (L) at its production of output. The…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Assume that the average product for six workers is fifteen. If the marginal product of the seventh…

A: The marginal product refers to the change in total output due to the employment of an additional…

Q: A firm has the production function f(x, y) = x³yº.3, where a>0.7. This firm has Select one: O a.…

A: Given  Production function : f(x,y) = x^a × y^0.3 , where a>0.7. To check whether it has what…

Q: A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is…

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

Q: Consider a short run production function q=7L+K  using L units of labour and K units of capital.…

A: Consider a short-run production function q=7L+K  using L units of labour and K units of capital. 1)…

Q: Suppose that a firm has a production function given by: q= 10 L² K. The firm has 10 units of capital…

A: The production function shows the relationship between the input used and the output produced.The…

Q: uppose A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but…

A: When MC = AVC, we know that MP = AP MP = dX/dL = - 0.6L2 + 36L + 1620 AP = X/L = - 0.2L2 + 18L +…

Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KL) a) Is…

A: In the study of economics, production functions represents the relationship between the quantity of…

Q: A firm can manufacture a product according to the production function Q = F(K, L) = K0.>L0.5. (a)…

A: Q = F(K,L) = K0.5L0.5 K¯ = 36 L ¯ = 16

Q: Say the marginal product of labour in production is 4 and the average product of labour is 7. Then,…

A: Marginal product of labor refers to an increase in total product because of addition of one more…

Q: Consider the "Cobb-Douglas" production function given by Y = AKL¹-a where A > 0 and 0 < a < 1. Which…

A: The Cobb-Douglas production function is a popular economic model used to represent the relationship…

Q: Which of the following is incorrect when there is one input (labor) in the production? The…

A: Answer: The production function is concave when its slope (marginal product of labor) falls. So the…

Q: 1. Complete the table on the right by computing for the values of average product and marginal…

A: law of diminishing marginal returns means when firm hire more and more labor with fixed factor then…

Q: Consider the production function Y AKL1, where A is a constant, L is labour, K i capital and a 0.…

A:

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.