Side panel ECS2601-24-S2 Which of the following is a true statement? a. None of the options are correct. b. Decreasing returns to scale and diminishing returns to production are two ways of stating the same thing. c. Constant returns to scale is a short-run concept and decreasing returns to scale is a long-run concept. d. Increasing returns to scale is a short-term concept and diminishing returns to production is a long-run concept.
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If the slope of a long-run total cost function increases as output increases, the firm's underlying production function exhibits: (a) constant returns to scale. (b) decreasing returns to scale. (c) decreasing returns to a factor input. (d) increasing returns to scale.
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Which is true about the output values of a production function? [1] They are conceptually flawed and of marginal use because they do not consider raw materials as input. [2] They represent only the value added of the two inputs that are represented. [3] They overlook the role of fixed inputs into production. [4] They overlook the role of a variable input into production. 17. For a given short-run production function, [1] technology is assumed to change as capital changes. [2] technology is assumed to change as labor changes. [3] technology is considered to be constant for a given production relationship. [4] technology is assumed to change positively until diminishing returns set in. 18. At a point of diminishing returns... [1] an additional unit of labor will lower the total output of the group. [2] marginal product of labor is equal to the average product of labor. [3] the first derivative of the total cost function is zero. [4] the second derivative of the cost function is zero. 19. In a production function with labor and capital, where the marginal product of each factor is zero, at the same time it is true that... [1] the two factors are complements in production. [2] the two factors are substitutes in production. [3] each factor of production detracts from the other in the production process [4] none of the above. 20. Which of the following is a true statement? [1] Decreasing returns to scale and diminishing returns to production are two ways of stating the same thing. [2] Increasing returns to scale is a short-term concept and diminishing returns to production is a long-run concept. [3] Constant returns to scale is a short-run concept and decreasing returns to scale is a long-run concept. [4] None of the above.
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