================================================== BUSI 620 Week 4 Discussion Board 4 For more course tutorials visit www . tutorialrank . com
additional workers would generate the following total output ( where each unit of output refers to 100 pages duplicated ). If the price of each unit of output is $ 10 and each worker hired must be paid $ 40 per day , how many workers should Ms . Smith hire ?
Problem 12 : Suppose that the production function for a commodity is given by Q = 10 √LK where Q is the quality of output , L is the quantity of labor , and K is the quantity of capital .
a ) Indicate whether this production function exhibits constant , increasing , or decreasing returns to scale .
b ) Does this production function exhibit diminishing returns ? If so , when does the law of diminishing returns begin to operate ? Could we ever get negative returns ?
Problem 13 : Indicate whether each of the following statements is true of false and give the reason
a ) A firm should stop expanding output after reaching diminishing returns
b ) If large and small firms operate in the same industry , we must have constant returns to scale .
================================================== BUSI 620 Week 4 Discussion Board 4 For more course tutorials visit www . tutorialrank . com
Question # 1 - Tetrangle Manufacturing has fixed costs of $ 2,160 per day . The firm manufactures bicycle component upgrade kits . The kits have a short-run average variable cost of $ 48 and are sold for $ 66 each .
What is the breakeven level of daily output for the firm ?