Question: Some input combinations and the respective outputs associated with a given production function are given in the following table. What are the returns to scale

Some input combinations and the respective outputs associated with a given production function are given in the following table. What are the returns to scale (increasing, constant or diminishing) if the firm moves across the following input combinations:

(a) B to C,

(b) C to D,

(c) D to E,

(d) E to F and

(e) F to G.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Questions!

True or False ______1. Productivity is the output produced by a unit of factor input during a given span of time. ______2. The theory of production describes the functional relationships of output...

I will rate correct answers only 3. Problem Set 1 International Equilibrium Explain how it is possible for a production function to have the property of constant or increasing returns to scale and...

American Airlines produces round-trip transportation between Dallas and San Jose using three inputs: capital (planes), labor (pilots, flight attendants, and so on), and fuel. Suppose that American's...

American Airlines produces round- trip transportation between Dallas and San Jose using three inputs: capital (planes), labor (pilots, flight attendants, and so on), and fuel. Suppose that Americans...

microecon 413 it is okay I.1 Short questions (answering requires only a few well chosen sentences and possibly a simple illustration) a) Consider an economy where all firms' technology is described...

1. Consider the production function f(x1, x2) = x2 1x2 2. Does this exhibit constant, increasing, or decreasing returns to scale? 2. Consider the production function f(x1, x2)=4x 1 2 1 x 1 3 2 . Does...

Q1: (10 points) Let Q(L) = 6L2 - (L3)/6 with costs = 300 + 100L. a) Complete the table on the next page. You can do this in excel or by hand. b) Why is L = 25 or larger not something we should...

gg a) Consider an economy where all firms' technology is described by the same neoclassical production function, = ( ) = 1 2 with decreasing returns to scale everywhere (standard notation). Suppose...

Explain in short details please 54. If TR is 75Q - 4Q-, MR is: (a) 75 (b) 75 -8Q (c)75 Q -4 (d) None of these 55. Given TC = Q' + 7Q + 23, what is 2Q + 7: (a) AC (b) minimum TC (c) maximum TC (d) MC...

Question 1 (5 points) ) Listen The curve shows how the quantity supplied by an industry depends on the market price, given a fixed number of producers. O a) critical analysis (b) long-run industry...

The following information is taken from the records of Erie Corp.(in thousands) for the year ended on December 31: 2019 2018 Sales $1,397 $1,122 Cost of Goods Sold 935 814 Selling Expenses 154 121...

The Plastic Lumber Company, Inc., (PLC) is a manufacturer that takes in post- consumer plastics (i. e., empty milk jugs) and recycles those plastics into a plastic lumber that can be used to build...

1 1 - 2 1 ( Objectives 1 1 - 4 , 1 1 - 5 ) The following questions concern the characteristics of IT systems and their impact on internal controls. Choose the best response. a . Which of the...

Server farms such as Google and Yahoo! provide enough compute capacity for the highest request rate of the day. Imagine that most of the time these servers operate at only 60% capacity. Assume...