Consider the following statements when answering this question:If a technology exhibits diminishing returns then it also exhibit's decreasing return1.to scale.If a technology exhibits decreasing returns to scale then it also exhibitsI.diminishing returns.A) Both I and II are true.is false, and Il is true.UC) Both I and II are false.D) I is true, and II is false.

Consider the following statements when answering this question: If a technology exhibits diminishing returns then it also exhibits decreasing re to scale. I. If a technology exhibits decreasing returns to scale then it also exhibits diminishing returns. A) Both I and II are true. B) I is false, and II is true. C) Both I and II are false. O D) I is true, and II is false.

Consider the following statements when answering this question: If a technology exhibits diminishing returns then it also exhibits decreasing re to scale. I. If a technology exhibits decreasing returns to scale then it also exhibits diminishing returns. A) Both I and II are true. B) I is false, and II is true. C) Both I and II are false. O D) I is true, and II is false.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 9CQ

See similar textbooks

Similar questions

12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1, 12}. 1/4 (b) f(z) = xỉ + x}/2 1/4 1/2 (c) f(x) = r1 + xj"x (d) f(x) = VE +a3.
Suppose that the dollar cost of producing x appliances is c(x) = 1000 + 70x-0.1x². a. Find the average cost per appliance of producing the first 100 appliances. b. Find the marginal cost when 100 appliances are produced. c. Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly. CUCKO The average cost per appliance of producing the first 100 appliances is $ (Round to the nearest cent as needed.) /appliance.
If a firm has economies of scale, it must have increasing returns to scale. True or false? EXPLAIN IN DETAIL. NOTE THAT= NOT ONLY WRITE TRUE OR FALSE.EXPLAIN EVERY DETAIL LONG. EXPLANATION DOES NOT MEAN DESCRIPTION.
A company produces commercials. A 2-minute commercial, for example, needs exactly 5 minutes of filming and 8 minutes of editing. Let x1 denote the minutes of filming and x2 denote the minutes of editing. a) Write down the production function and state whether it has increasing, constant, or decreasing returns to scale b) Suppose that filming costs $45 per minute and editing costs $10 per minute. To produce a 5-minute commercial, how many minutes of filming and how many minutes of editing is needed to minimize cost? c) Suppose that filming costs w1 per minute and editing costs w2 per minute. Let y denote the length (in minutes) of commericals produced. derive the conditional factor demand functions x1(w1,w2,y) and x2(w1,w2,y) and its cost function c(w1,w2,y)
Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is linear. The belts are sold for$ 27 each. a)find the marginal cost b)find a linear equation in slope-intercept, form that represent the total Cost of making will c) What is the fixed cost? d) find a profit in slope- intercept that will represent the profit if x belt are made and sold? e) Find the break even point?
Set all variables to their baseline values.9) At what level of output is average cost a minimum?10) What is average cost (AC) at that output?11) What is marginal cost (MC) at that output? BASELINE COSTS TC (BASE) $175,113 AC (BASE) $43.78 MC (BASE) $64.12 NEW COSTS TC (NEW) $175,113 AC (NEW) $43.78 MC (NEW) $64.12 POLICY VARIABLES Output 4,000 Fixed cost 25,000 Tax per unit $0.00 AC(NEW)-MC(NEW) -$20.34
Economic Mathematics Consider the problem of inventory costs and production to satisfy a demand x for a certain product. The data is as follows: Delivery period T = 8Starting inventory x (0) = 0Ending inventory x (8) = 144Inventory cost CI (x (t)) = 7x (t)Production flow cost Cp = 3.5x'2 (t)1. Write the problem of minimizing total costs over time 2. Check the second order conditions for minimization3. Raise the Euler equation and the differential equation to solve4. Find the paths of inventory, production and total costs5. Graph the inventory and production lanes (use 0.5 increments over time)
4. Questions and Pr Diseconomies of scale ( The law of diminishing marginal returns erence between the law of diminishing marginal returns and diseconomies of scale. applies to the short run, when at least one input is fixed, whereas when all inputs are variable and is therefore a long-run concept. Grade It Now Save & Continu Continue without sa
The production function for soy beans is q = K 0.25 L 0.45. Dose this production function have constant, increasing or decreasing return to scale? A. may be increasing or decreasing B. Constant return to scale C. Decreasing return to scale D. Increasing return to scale
The long-run is a period of time long enough so that all inputs, including facility and equipment, are variable, while in the short run at least one input is fixed. Think about how much time it would take to change the scale of operation for a restaurant, for an automobile plant, for a website designing company... Does it seem that the amount of time that separates the long run from the short run is industry-specific, rather than a set period of time?
The cost curve for producing widgets passes through the following points and is piecewise linear in between. Solve, f. What is the fixed cost per unit for producing 1,000 widgets? g. What is the variable cost per unit for producing 1,000 widgets?
Define and explain the difference between economics of scale and economies of scope. Include an example of each.