Question: 1. The table below demonstrates how much output a company can produce utilising two different types of inputs: labour and capital. INPUTS OUTPUT LABOR CAPITAL

1. The table below demonstrates how much output a company can produce utilising two different types of inputs: labour and capital. INPUTS OUTPUT LABOR CAPITAL 50 6 2 120 12 4 260 24 8 520 48 16 1000 96 32 a. Is the company operating on a short-term or long-term basis? Why? b. Determine the range of output when the company encounters: i. Increasing scale returns; ii. Decreasing scale returns; iii. Constant returns to scale

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The feeling of boredom.

2. In this chapter, the reader should reflect on the following concepts: