Q: For the production function y = 4x1+ 3x2, which of the two inputs is more productive when x1 is 4…
A: Answer; option a (x1) Explanation: Let us calculate the marginal product (MP) of both the inputs to…
Q: Consider the following production function: F (K ,L) = 2K (a) Graph at least two isoquants and…
A: Production function indicates the total production done using the given inputs. An isoquant is the…
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A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
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Q: complementary inputs occur where substitution is possible between the two * inputs True O False
A: Complementary inputs are inputs to production that a firm uses closely together. Hence if a firm has…
Q: A football producer has available Rs.200. What will be the slope of iso-outlay line when, price of…
A: Iso-outlay line or iso-cost line represents those combinations of two inputs which incurs the same…
Q: Define marginal rate of substitution.
A: The marginal rate of substitution(MRS) is a very technical word in economics, defined as the…
Q: A profit-maximizing firm equates the marginal rate of technical substitution of two inputs to: the…
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Q: A firm produces output y from inputs x1 and x2 whose prices are given as w1 = 1 and w2 = 1…
A: Answer- Given in the question- The production function = y = x11/2 x21/2 Inputs x1 and x2 Prices w1…
Q: a rational producer can produce after the point where Marginal product MP is less than zero, if the…
A: In economics, a rational consumer is one that make decision to maximize his utility using the given…
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A: Isoquant curve is the possible of two combination of inputs which give same level of production .
Q: Assume the production function is given by: f(x1, x2) = (2x9.253.5)3. What is the absolute value of…
A: Production refers to the process of using inputs to make useful output. The functional relationship…
Q: The marginal rate of technical substitution between two inputs: shows the rate at which one input…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Consider thne production of copper pipes that can be represented by production function tnat is…
A: A production function transforms an input into output. A linear production function can be written…
Q: Suppose a firm is planning to replace a labor intensive production process with an automated robot…
A: Given Labor-intensive production: L1= 24 workers and K1=3 machines Automated robot production: L2=…
Q: Define marginal product and explain the law of diminishing marginal utility advocated by David…
A: Production function depicts the relationship between the inputs and the output. The inputs are the…
Q: In the long run... Multiple Choice all inputs are fixed. None of these options are correct. the…
A: Long run in economics is a time period where firm can adjust all the costs whereas they can only…
Q: In industry, when the price of electricity goes up, the company employs more low-skilled workers.…
A: Price: It refers to the cost of the goods and services on which the people purchase goods and…
Q: Explain the difference between the law of diminishing marginal returns and the law of diminishing…
A: The utility is the level of satisfaction received by the consumer from the consumption of a…
Q: Q = L1/2 K1/2 They have 16 units of capital (which is fixed in the short-run). The unit cost of…
A: The production function refers to the functional relationship between input and output, which…
Q: a rational producer can produce after the point where Marginal product MP is less than zero, if the…
A: Even if the price of input is zero, a rational producer will never produce in the region where…
Q: t is known that the production function of a commodity is: Q = 40X + 12X2 - 1.2X3 A. Calculate the…
A: Total product is the units of output produced with a certain amount of input units. Therefore, to…
Q: Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: A search good is a product that: is difficult to locate, so it takes time to find it. can easily be…
A: A search good is a product or service which can easily be evaluated before purchase.
Q: how to find the marginal rate of substitution for perfect complements
A: Marginal rate of substitution can be defined as the maximum amount of one good which a consumer is…
Q: Decreasing rate of marginal substitution between two inputs occur when the input being added replace…
A: Marginal Rate of substitution is the slope of isoquant which states that how much change in good Y…
Q: Suppose the wage increases. Show that in the long run the firm will hire fewer workers. Decompose…
A: In an economy, when there is a change in the cost or price level, there are two types of effect that…
Q: true or false The closer an isoquant is to a straight line, the closer the inputs are to being…
A: An isoquant refers to a line that shows all the input combinations that yield the same level of…
Q: which of the following functions satisfy the following properties: i) Increasing in both inputs.…
A:
Q: Write the technical rate of substitution expression for f(x1, x2) = (x1 - 1)0.25 x20.5
A: The marginal rate of technical substitution (MRTS) is an concept that explains the rate by which one…
Q: A laundry cleans white clothes using a production function q = B + 2G, where B is the number of cups…
A: The production function is given as follows: Putting B=0, then; Putting G=0, then; The isoquant…
Q: Suppose that a firm’s production function is Q =10 K^(3/4)L^(1/4). The cost of a unit of labor is $1…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Suppose that a firm's estimated production Q = K3/4L1/4 What is the marginal rate of technical…
A: Marginal rate of technical substitution refers to the ratio of marginal product of labour and…
Q: a) For an output level of 40 units, calculate the marginal rate of technical substitution between…
A: The marginal rate of technical substitution (MRTS) is an economic theory that shows the rate at…
Q: Define and then derive the expression for the marginal rate of technical substitution.
A: Marginal rate of technical substitution (MRTS) measures the rate at which one factor must give up in…
Q: Isovalue lines are lines along which the utility is constant. lines along which the value of input…
A: Isovalue lines are the lines along which the value if output is constant. The slope of the line…
Q: a rational producer can produce after the point where Marginal product MP is less than zero the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: There is no difference between the law of diminishing marginal returns and the law of diminishing…
A: Answer: The given statement is false. Explanation: Law of diminishing marginal returns: When a…
Q: At the point of inflexion, the marginal product is
A: To find : What will be value of marginal product at point of inflexion.
Q: Compute the firm's marginal products, and marginal rate of technical substitution. Report the…
A: Given; Production function; f(L,K)=LK Formula to calculate:- MPK=df(L,K)dKMPL=df(L,K)dLMRTS=MPLMPK
Q: Suppose that the production function is ƒ(x1,x2) = (xĩ + x²)º, where a and b are positive constants.…
A: A production function ties the physical output of a production process to its physical inputs or…
Q: If two inputs are perfect substitutes a. The isoquant is a straight line and the MRTS is constant b.…
A: The answer is a. The isoquant is a straight line and the MRTS is constant Therefore, if two inputs…
Q: The production function is Q = K^.6 L^.4. The marginal rate of technical substitution is
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: An artisan has the total cost of daily production as a function where q represents the…
A: To decide it's cost , revenue and Marginal function we need to understand how they are calculated .
Q: Determine the maximum utility if the production function is P = 20 – x2 + 10x – 2y2 + 5y, the prices…
A:
Q: Consider a production function in such a form: Q= f (K,L)= 3KL Calculate the elasticity of…
A: Marginal rate of technical substitution = marginal productivity of labor/marginal productivity of…
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- Explain substitution and income effect by citing an example509 UNIT 1 ASSIGNMENT ECON 509 UNIT 2 ASSIGNMENT X PDF ars/Jo.. Tp AN Read aloud V Draw Highlight ECON 509 ASSIGNMENT UNIT ONE Answer All questions 1) a) Given the following typical utility curves determine whether they have convex indifference curves (that is, whether the Marginal Rate of Substitution declines as x increases). U(x. y)-x² -y? b) Given the following Constant Elasticity of Substitution production function, show whether or not it is homogeneous, and the scale it exhibits. Q = [L² + K']^ 2) Prove that the polynomial P(x) = -2x3 + 2x2 + 10x+ 6 has a zero at x 3, and factor the polynomial. %3D 3) The demand and supply functions for two related goods; jeans (x) and shirts(y). are given byCocept of equilibrium What do you understand by equilibrium
- Based on research into marginal rates of substitution, which of the following is true regarding breakfast cereals? O younger people prefer high fiber cereals O younger people prefer high sugar cereals O older people prefer cereal with prizes in the box O older people have a higher MRS of sugar for fiber(a) Explain with the help of a graph the effect of an increase in the relative price of a labor-intensive good on input choice. (b) “Generally, an economy will tend to be relatively effective atproducing goods that are intensive in the factors with which the country is relatively wellendowed.” Explain the above statement with the help of a graph.b. i. Explain the concept of Marginal Rate of Substitution (MRS) as an important tool of indifference curve analysis of demand
- If Porsha view 3 glasses of juice as a perfect substitute for one cup of soda and vice versa, what is her marginal rate of substitution between juice and soda?1. In your own idea, differentiate substitution effect from income effect. Give atleast 2 examples each.In this particular example, what are the contributions of the income and substitution effects?
