Search results
Question: This question refers to the following graph. Assume that the market starts in the equilibrium of D1 and S1. Then there will be an eventual increase in the number of firms at the long run equilibrium. the market is in a long run equilibrium. the firm has externalities and a negative fixed cost resulting in increasing returns to scale ...
An important and somewhat counterintuitive property of constant returns to scale production is this. If a production function f exhibits constant returns to scale and if the problem maximize x π(x) = pf(x)−w ·x has a solution, the the optimal profit is zero. The proof is simple. By constant returns f(0) = f(0x) = 0f(x) = 0 for any x, so
A. increasing returns to scale. B. constant returns to scale. C. decreasing returns to scale. Answer . D. increasing, then diminishing returns to scale. E. negative returns to scale. 2) The production function Q = 50K 0.25 L 0.75 exhibits. A. increasing, then diminishing returns to scale. B. increasing returns to scale. C. decreasing returns to ...
Question: In a production process, all inputs are increased by 10%; but output increases 8%. This means that the firm experiences a. increasing returns to scale b. constant returns to scale c. decreasing returns to scale d. negative returns to scale. Here’s the best way to solve it. Option C In the long run all the inputs are variable and ...
Jan 1, 2024 · Figure 1 depicts the law of diminishing returns using one input, x. As the unique input x increases, output ( y) increases, but at different rates. At low levels of output (around y1 ), the production function y = F (x) is convex; thus, it exhibits increasing returns to scale (doubling inputs more than doubles output).
Question: In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences: Select one: a. decreasing returns to scale. b. negative returns to scale. increasing returns to scale. d. constant returns to scale. There are 2 steps to solve this one.
Nov 15, 2019 · There are two explanations for negative returns to scale in active management. The first is at the fund level—a fund’s ability to outperform its benchmark declines as its assets increase: the larger a fund, the greater the impact of its trades on prices, negatively impacting performance. The second is at the industry level, as increased ...
