--%>
Assignment Help - homework help

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

   Related Questions in Microeconomics

  • Q : Economy affects in government spending

    How do economy affects when there is reductions in government spending?

    		•
  • Q : Marginal tax rate on earn income The

    The marginal tax rate onto earned income in the negative income tax system demonstrated in this figure is: (1) 15 percent. (2) 20 percent. (3) 25 percent. (4) 33.3 percent. (5) 50 percent.

  • Q : Problem on greatest consumer surplus

    Which of the following below goods produces the greatest consumer surplus? (1) Free downloading to pirate your favorite songs. (2) Diamonds. (3) Water. (4) College textbooks. (5) Slices of the pizza. Choose the right answer from th

    		•
  • Q : Wage discrimination Wage discrimination

    Wage discrimination due to race or sex occurs while: (w) members of some groups are paid less for equal work than other groups. (x) certain groups are excluded from particular occupations. (y) housing conditions are inequitable between economic classe

    		•
  • Q : Bonds and Market Interest Rates

    Increases within market interest rates are probably to be related with: (1) people’s increasing desires for vast “nest eggs” for security while they retire. (2) bursting a speculative bubble into prices for hi-tech stocks. (3) increa

    		•
  • Q : Effect of average expected lifespan on

    When new medical technology raised the average expected lifespan through 10 years and people responded along with increases in their desires to have hefty “nest eggs” while they retire, it would be least probable to result into: (1) an inc

    		•
  • Q : Complication in accusation of predatory

    An accusation of predatory pricing is complicated to prove within a court of law since: (w) firms generally have too much power. (x) consumers and juries like the low prices and are less likely to fine a firm for lowering price. (y) predatory behavior

    		•
  • Q : Arc elasticity for labor of demand The

    The arc elasticity of Bosun’s demand for labor between point d and point e is roughly: (1) one. (2) 1.25. (3) 2.50. (4) 3.75. (5) 5.00.

    Q : Features of monopolistic competition

    Why Features of monopolistic competition is monopolist in nature? Answer: (a) Control over price (b) Downward sloping demand curve

    		•
  • Q : Calculating accounting profits The firm

    The firm has $70,000 in implicit costs, and the economic profit of $40,000. This firm’s: (i) Explicit cost equivalent $30,000. (ii) Accounting profits equivalent $110,000. (iii) Normal gain equivalents $40,000. (iv) Explicit costs equivalent $110,000.