Production is an extremely facility task, so economists make a number of simplifyingassumptions. I beg your pardon of the following presumptions do financial experts make in their basic model ofproducer behavior?I. Multiproduct firms: every firms produce at the very least two goods.II. Firms only use two inputs in the manufacturing process: capital and labor.III. Expense minimization: Firms attempt to produce a fixed quantity of output at the lowestpossible complete cost.IV. Firms have the right to produce more output by using an ext inputs.

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Which the the complying with is (are) example(s) of manufacturing functions?I. Q = 56K + 18LII. Q = 2K^0.8 L^0.2III. Q = KL
A donut shop has actually a production role given through Q = 50K^1/3 L^1/2, whereby Q is the variety of donutsproduced per hour, K is the variety of donut fryers (which is resolved at eight in the short run), and L is the number of employed workers. How numerous donuts have the right to be produced per hour with 4 workers in the short run?
Suppose a firm"s short-run production duty is offered by Q = 16L^0.8. What is the marginal product the the fourth worker?
Suppose the slope of a short-run production duty is provided by 2/L 0.5. I beg your pardon of the following statements is (are) TRUE?I. The marginal product of the fifth worker is 0.20.II. The production role exhibits increasing marginal returns.III. The marginal product of the 16 worker is 0.50.IV. The production function"s slope eventually transforms from positive to negative as the firmproduces more and more.
Hell"s Kitchen, i beg your pardon has enough counter an are for three cooks every shift, decides to rental afourth chef per shift.
Brenda"s Pastry employs three workers who produce 6 dozen pastries per hour. After Brenda hiresa 4th worker, the variety of pastries developed increases come 7 dozen per hour. Because themarginal product of the 4th worker is _____ than the average product of 3 workers theaverage product need to _____.
If a certain is making use of a lot of capital and just a little labor, the marginal product of labor is_____ loved one to the marginal product of funding making it _____ to substitute job for capital.

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Suppose the a neighborhood health facility finds that regardless the the variety of physicians or nursepractitioners employed, it can always replace one family members practice physician by using twoadditional nurse practitioners there is no affecting the amount or high quality of patience office visits. Thisfinding indicates that:
Which of the complying with statements is (are) TRUE?I. If labor and also capital room perfect substitutes in production, the isoquant is a downward-sloping line.II. If a firm needs to usage inputs in resolved proportion such the the resources to labor proportion isalways 2, the firm"s isoquants space L-shaped.III. If the production function is given by Q = min(14, 7), the firm can produce, in ~ minimum,21 units of output.
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