Q: It is possible to have diminishing returns to a single factor
It is possible to have diminishing returns to a single factor of production and constant returns to scale at the same time.Discuss.
See AnswerQ: Can a firm have a production function that exhibits increasing returns
Can a firm have a production function that exhibits increasing returns to scale, constant returns to scale, and decreasing returns to scale as output increases?Discuss.
See AnswerQ: Give an example of a production process in which the short
Give an example of a production process in which the short run involves a day or a week and the long run any period longer than a week.
See AnswerQ: Suppose the income elasticity of demand for food is 0.
Suppose the income elasticity of demand for food is 0.5 and the price elasticity of demand is –1.0.Suppose also that Felicia spends $10,000 a year on food, the price of food is $2, and that her income...
See AnswerQ: The utility that Meredith receives by consuming food F and clothing
The utility that Meredith receives by consuming food F and clothing C is given by U(F,C) = FC.Suppose that Meredith’s income in 1990 is $1200 and that the prices of food and clothing are $1 per unit f...
See AnswerQ: You manage a plant that mass-produces engines by teams
You manage a plant that mass-produces engines by teams of workers using assembly machines.The technology is summarized by the production function q = 5 KL where q is the number of engines per week, K...
See AnswerQ: Ben allocates his lunch budget between two goods, pizza and
Ben allocates his lunch budget between two goods, pizza and burritos. a.Illustrate Ben’s optimal bundle on a graph with pizza on the horizontal axis. b.Suppose now that pizza is taxed, causing the...
See AnswerQ: Suppose the government regulates the price of a good to be
Suppose the government regulates the price of a good to be no lower than some minimum level.Can such a minimum price make producers as a whole worse off?Explain.
See AnswerQ: The short-run cost function of a company is given
The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the total cost and q is the total quantity of output, both measured in thousands. a.What is the company’s...
See AnswerQ: A chair manufacturer hires its assembly-line labor for $
A chair manufacturer hires its assembly-line labor for $30 an hour and calculates that the rental cost of its machinery is $15 per hour.Suppose that a chair can be produced using 4 hours of labor or m...
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