Get premium membership and access questions with answers, video lessons as well as revision papers.
-The production function is defined only for the non-negative values of inputs and outputs.
-The production function presupposes technical efficiency. This means that every possible
combination of inputs is assumed to result in maximum level of output.
-The input- output relationship or the production function is single valued and continuous.
-The production function is characterized by i) decreasing marginal product for all factor-
product combinations; ii) decreasing rate of technical substitution between any two factors; and iii) an increasing rate of product transformation between any two products.
-The returns to scale are assumed to be decreasing.
-All the factors of production and products are perfectly divisible.
-The parameters determining the firm’s production function do not change over the time period considered. Also, these parameters are not allowed to be random variables.
-The exact nature of any production function is assumed to be determined by a set of technical
decisions taken by the producer.
jim items answered the question on March 18, 2019 at 17:07
- Illustrate equilibrium in an oligopolistic firm(Solved)
Illustrate equilibrium in an oligopolistic firm
Date posted: March 7, 2019. Answers (1)
- Illustrate the short-run and long-run equilibrium under the monopoly market(Solved)
Illustrate the short-run and long-run equilibrium under the monopoly market
Date posted: March 7, 2019. Answers (1)
- Illustrate demand and revenue curves for a monopolistic market(Solved)
Illustrate demand and revenue curves for a monopolistic market
Date posted: March 7, 2019. Answers (1)
- Illustrate the long-run equilibrium of a firm under perfect competition(Solved)
Illustrate the long-run equilibrium of a firm under perfect competition
Date posted: March 7, 2019. Answers (1)
- Derive the profit maximization equation(Solved)
Derive the profit maximization equation
Date posted: March 7, 2019. Answers (1)
- State and explain the law of increasing returns(Solved)
State and explain the law of increasing returns
Date posted: March 7, 2019. Answers (1)
- What is an Isocost line and which are its shifts?(Solved)
What is an Isocost line and which are its shifts?
Date posted: March 7, 2019. Answers (1)
- Elaborate the choice of optimal combination of factors of production(Equilibrium of the firm)(Solved)
Elaborate the choice of optimal combination of factors of production(Equilibrium of the firm)
Date posted: March 7, 2019. Answers (1)
- Show the homogeneity of production function in relation to returns to scale(Solved)
Show the homogeneity of production function in relation to returns to scale
Date posted: March 7, 2019. Answers (1)
- Explain the law of "return to scale"(Solved)
Explain the law of "return to scale"
Date posted: March 7, 2019. Answers (1)
- Prove that relevant range of production is in the section of the isoquant which is negatively sloped and convex(Solved)
Prove that relevant range of production is in the section of the isoquant which is negatively sloped and convex
Date posted: March 7, 2019. Answers (1)
- Define the isoquant analysis(Solved)
Define the isoquant analysis
Date posted: March 6, 2019. Answers (1)
- State and explain the types of production curves(Solved)
State and explain the types of production curves
Date posted: March 6, 2019. Answers (1)
- What are the similarities and differences between consumer behavior and production theory?(Solved)
What are the similarities and differences between consumer behavior and production theory?
Date posted: March 6, 2019. Answers (1)
- What is the definition of production concept?(Solved)
What is the definition of production concept?
Date posted: March 6, 2019. Answers (1)
- Describe the distinction between substitution and income effect in the case of normal, inferior and giffen goods(Solved)
Describe the distinction between substitution and income effect in the case of normal, inferior and giffen goods
Date posted: March 6, 2019. Answers (1)
- Describe the changes in the budget line.(Solved)
Describe the changes in the budget line.
Date posted: March 6, 2019. Answers (1)
- Describe the budget constraint(line) of the consumer(Solved)
Describe the budget constraint(line) of the consumer
Date posted: March 6, 2019. Answers (1)
- Illustrate derivation of the equilibrium condition for the consumer(Solved)
Illustrate derivation of the equilibrium condition for the consumer
Date posted: March 6, 2019. Answers (1)
- What are the assumptions(Axiom) under cardinalist utility approach in economics?(Solved)
What are the assumptions(Axiom) under cardinalist utility approach in economics?
Date posted: March 6, 2019. Answers (1)