If a firm using only capital and labor doubles its labor input and output increase by less than 100 percent, thenO 1. production exhibits decreasing returns to scale and production exhibits diminishing returnsO 2. production exhibits increasing returns to scale.3. production exhibits decreasing returns to scale.O 4. production exhibits increasing returns to scale and production exhibits diminishing returns.O 5. production exhibits diminishing returns. Quèstion 10A production process would exhibit increasing returns to scale if1. planting twice as many acres and doubling all other inputs increased production by less than 100 percent.O 2. adding a complete second shift increased output by less than 100 percent.O 3. opening a second assembly line increased output by 100 percent.O 4. doubling output required less than twice as much energy.A Movcing to tbe poxt quostion orovonts changos te this anower

9. Answer is "Production exhibit decreasing returns to scale" A production function has decreasing…

Answered: If a firm using only capital and labor…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which statement is correct? Choose an answer O 1. The average fixed costs increase with the production volume. O 2. The average total costs are minimal when the average fixed costs are equal to the average variable costs. O 3. In the long term, it pays to maintain production operations as soon as a positive contribution margin is generated. O 4. The operating optimum is where the marginal costs intersect the average variable costs. O 5. As long as the marginal costs are below the average total costs, the average total cost.
Quantity O c. Firm 2 O d. Firm 3 1 2 3 4 5 6 7 Table 13-12 Long-Run Total Cost (Dollars) Firm 1 Firm 2 Firm 3 Firm 4 180 120 150 210 350 250 300 340 510 390 450 490 660 540 600 660 800 700 750 850 930 870 900 1,060 1,050 1,050 1,050 1,290 Refer to Table 13-12. Which firm has constant returns to scale over the entire range of output? O a. Firm 4 O b. Firm 1
Suppose a firm builds a larger plant and increases its output. Which of the following statements is correct? O a. It will be able to achieve its MES output only if it also achieves economic capacity. O b. Its short-run average cost curve for the original plant will have shifted down. O c. Its MES output must increase. O d. Its long-run average costs must have increased. Oe. Its MES output will decrease.
According to Little's Law, which statement is correct for a stable process: O a. For a given throughput, the average inventory is independent of the average flow time O b. For a given throughput, increasing the average inventory results in an increase in the average flow time. O c. For a given throughput, decreasing the average inventory results in an increase in the average flow time. O d. For a given throughput, increasing the average inventory results in a reduction in the average flow time.
Cost Per Year O O O 1 At what level of output does average total cost equal marginal cost? ♂ Q4 QQQQ Q8 TC VC FC Output
QUESTION 10 If a Cobb Douglas technology (with factors having strictly positive marginal product) has constant returns to scale, then O a. Isoquants must be linear O b. Each factor of production has constant marginal product Oc Both factors of production must have decreasing marginal product O d.At least on factor of production must have decreasing marginal product Oe. Both factors of production must have constant marginal product
In economics, how long is the long run? O 5 years or more More than 12 months O 24 months or longer Whatever time it takes a firm to vary all inruts.
MULTIPLE CHOICE Question 22 Which of the following factors contribute to economies of scale? Select all that apply. A B C D fixed capital costs that diminish with production lower tax rates as profits increase buying power that translates into lower material costs more available workers in these industries better borrowing rates because of the size of the business ỏ ó 00 O 3 Total Questions Answered 66000 All Changes Saved A Cont &
. What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From ___ to ____g. Over what range of the variable input usage do decreasing marginal returns exist?From ___ to ___h. Over what range of input usage do negative marginal returns exist?From ___ to ___ . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From to g. Over what range of the…
Which action would decrease per unit costs? O b. O a. Decreasing output when experiencing diseconomies of scale. Decreasing output when experiencing economies of scale. Increasing output when experiencing diseconomies of scale. O d. Increasing output when experiencing constant returns to scale. Oc.
Output Total Fixed Cost Total Variable Cost $9 $0 1 $9 $5 $8 $9 $9 $10 4 $9 $11 $9 $12 _dollars. The marginal cost of producing the 3rd unit of output is O 9 O 19 O 2 O 10 %24 3. 5.
QUI The figure below depicts the production function of grain for farmers under average growing conditions with the currently available Noi technology. Mar 9007 PF 800- 700- 600- 500- 400- 300- 200어 100- o Slope 732,000/ 1,600 = 458 04 400 800 1200 1600 2000 2400 2800 Number of farmers Select one or more: In a year with exceptionally good weather conditions, the production function curve will be higher and parallel to the curve O a. above. O b. A discovery of new high yielding crop seeds would tilt the production function curve higher anti-clockwise, pivoted at the origin. O C. In a year of bad drought the production curve can turn downwards for large numbers of farmers. O d. If there is an upper-limit on the amount of grain that can be produced, then the curve will end up horizontal for large number of farmers. S Type here to search 25 hp t4 15 16 eSC 5 6. 7. 00 %24 3. . ........ Kilogrammes of grain produced (thousands)

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