Neoclassical Production and Costs

Assume the following production function: y = 2x₁^.5 + 3x₂^.5

a. Suppose x₂ = 16, derive the marginal product schedule for x₁. In which direction is it moving?

b. What returns to scale does the production function show?

c. Consider p₁ = $4.00, p₂ = $2.00, and x₂ = 16; for the specified values of y find out average fixed costs, average total costs, average variable costs, and marginal costs:

y x₂ x₁ AFC AVC ATC MC

12 16

13 16

14 16

15 16

16 16

17 16

18 16

View Complete Question

Related Questions in Microeconomics

Q : Indication by data on poverty Data on

Data on poverty into the United States indicate which: (w) in absolute numbers, additionally blacks are below the poverty line than whites. (x) in absolute numbers, more whites are below the poverty line than blacks. (y) the poverty rate is lower for

Q : Corporations account problem I have a

I have a problem in economics on Corporations account problem. Please help me in the following question. The Corporations account for roughly ______ of U.S. business revenues. (i) 1/4. (ii) 1/2. (iii) 1/6. (iv) 5/6. (e) All the above.

Q : State Statutory liquidity ratio or SLR

State SLR (or Statutory liquidity ratio): It is the ratio of net or total demand and time deposits of commercial bank that, it has to keep in the form of specified liquid assets.

Q : Horizontally summing the short-run

For a competitive industry the short-run supply curve is derived through summing the short-run supply curves of all firms within the industry: (w) vertically. (x) horizontally. (y) diagonally. (z) and computing their arithmetic average.

Q : Problem regarding Inferior Goods

Subsequent to Fred received a promotion and a big raise; he bought some macaroni and cheese dinners. For Fred, the: (1) Demand for the macaroni and cheese dinners is not predictable. (2) Macaroni and cheese dinners are the normal goods. (3) Demand for cheese and macar

Q : Opinion about kinked demand curve model

George Stigler concluded which the kinked demand curve model is incorrect to the extent that this depends on: (w) marginal cost pricing. (x) pure competition. (y) interdependent decision making. (z) sticky prices.

Q : Marginal revenue product of labor The

The monopsonist will hire labor till the labor's marginal resource cost equivalents the: (1) Marginal revenue product of the labor. (2) Marginal physical product. (3) Value of average product of the labor. (4) Price of the labor. C

Q : Abolition of exploitation The removal

The removal of exploitation of labor [that is, wage payments beneath the value to society of each and every individual worker’s productive contribution] is automatic when business decision makers: (v) Should set wages via collective bargaining agreements with th

Q : Increase total revenue and exceeds

When a firm along with market power raises the price of a good a little, total revenue as: (w) falls in the inelastic range of the demand curve. (x) rises over the elastic range of the demand curve. (y) stays close to zero in the unit

Q : Effect of an increase in the price

Which of the following diagrams depictes(s) the effect of an increase in the price of Budweiser beer on the market for Coors beer? A) A and C. B) A only. C) B only. D) C only. 190_gh.pn</span></p>
</div>

</li>

</td>
</tr>
</table>

</ul>

</div>
</div>
<div class=

Discover Q & A

Leading Solution Library

Avail More Than 1428729 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1929912
Asked

3,689

Active Tutors

1428729

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment