Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing...
A6 Microeconomics Assignment 6 Part I: Short Answer Questions [(100 points) Q1 [30 points) Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions...
Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using one worker and two units of capital. If the firm has an extra worker, say two workers, and no more capital, it still can produce only one unit of output. Similarly, an extra unit of capital does the firm no good.a) Draw the isoquants for this production function.b) Draw the total product, average product, and marginal product of labor curves (you will...
Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using one worker and two units of capital. If the firm has an extra worker, say two workers, and no more capital, it still can produce only one unit of output. Similarly, an extra unit of capital does the firm no good.a) Draw the isoquants for this production function.b) Draw the total product, average product, and marginal product of labor curves (you will...
Answer the following questions based on the following production function: Does this production function represent the long run or the short run? Explain. Suppose capital (K) is held fixed at 3 units and the firm hires 5 workers. What is the average product? What is the marginal product of adding the 6^th worker? Does the production function eventually exhibit diminishing returns? If so, where and why does this occur? Depict the isoquants for the production function for output levels 27...
b. Does this production function have an uneconomic region? If yes, find the region. c. Based on your answer to (b), sketch a graph of two isoquants Q1 and Q2 withQ1 < Q2. 1. (12 points) Consider the production function Q = KL2-L", and answer the following questions. a. (4 pts) Does this production function exhibit diminishing marginal product of capital? Diminishing marginal product of labor? Explain.
SHOW ALL WORK !!! a) What is an isoquant? Where do we use isoquants? b) What are the properties of isoquants? c) Draw a representative family of isoquants for a standard Cobb-Douglas production function. 3. d) Suppose that a firm has fixed-proportions production function, in which one unit of output is produced using one worker and two units of capital. If the firm has an extra worker and no more capital, it can produce only one unit of output. Similarly,...
How to solve for the table In-class Activity #7 Below table illustrates the production of a furniture manufacturing company in the short-run, Labor is the variable input and capital is the fixed Input in the production. Assuming all worker has equal skill at work. Average Product-T Marginal product Total output Labor Capital 48 68 80 78 Fill in the average product and marginal product cells in the table. When do you observe diminishing marginal return from labor in the production?...
28) The law of diminishing returns, as it applies to labor, means that A) the marginal product of labor will eventually be a horizontal line at zero. B) the average product of labor starts to decline before the marginal product of labor. C) total output eventually decreases. D) the average product of labor increases at a decreasing rate. E) the marginal product of labor eventually decreases as more labor is added with capital held fixed. 29) A firm's short-run labor...
1. Consider a firm that has the following CES production function: Q = f(L,K) = [aLP + bK°]!/p where p a. Derive the MRTS for this production function. Does this production function exhibit a diminishing MRTS? Justify using derivatives and in words. What does this imply about the shape of the corresponding isoquants? (10 points) b. What are the returns to scale for this production function? Show and explain. Explain what will happen to cost if the firm doubles its...
Complete the following table for the following production function 8) The production function and the diminishing average product of labor a) Complete the following table for the following production function (round off to nearest whole number): | | Average product of labor (kg/worker) # of workers 10 20 30 40 50 60 70 80 Grain output (kg) 632 894 1,095 1,265 1,414 1,549 1,673 1,789 b) Given the above data graph the production function. Show how to represent the average...