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Triss [41]
2 years ago
5

A firm has a production function satisfying constant returns to scale. Their cost of producing 100 units of their product is $20

0,000.00. What is their cost of producing 500 units?
Business
2 answers:
umka21 [38]2 years ago
8 0

Answer:

1,000,000

Explanation:

As there are constant returns to scale the cost to produce a greater output will grow following a linear fucntion thus,

if 100 units units are produced at a cost of 200,000 dolllars

then 500 units will be produced five times that amount:

200,000  x 500/100 = 200,000 x 5 = 1,000,000

The total cost for 500 units will be a million dollars

Ber [7]2 years ago
8 0

Answer:

Constant returns to scale is when a proportional increase in inputs such as capital and labour cause the same proportional increase in output. Constant returns to scale occurs when an increase in number of inputs leads to an equivalent increase in the output.

From the question, to determine the cost of producing 500 units;

The cost of producing 100 units = $200,000

The cost of producing 500 units = ?

= ($200,000 × 500) ÷ 100

= $100,000,000 ÷ 100

= $1,000,000

The cost of producing 500 units = $1,000,000

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If inputs increase by 15% and outputs increase by 15%, what is the percentage change in productivity?
scoray [572]

Answer:

0%

Explanation:

If input increase by 15% and output increase by 15% then the equation for productivity will be

Input = 100% + 15% = 115%

Output = 100% + 15% = 115%

productivety =\frac{Outpu t }{Inpu t}

productivety=\frac{1.15}{1.15}

productivty = 1

Percentage change = 1-1

Percentage change = 0%

If both Output and input is increased by the same amount the results will be the same

6 0
3 years ago
If the required reserve ratio is 2.50 percent, what is the monetary multiplier? if the monetary multiplier is 5, what is the req
ludmilkaskok [199]

If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.

The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.

If the monetary multiplier is 5, the required reserve ratio is 20%.

Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).

8 0
3 years ago
Net cash provided by operating activities was $12,000. Net cash provided by investing activities was $2,000. Net cash used in fi
ser-zykov [4K]

Answer:

$25,000

Explanation:

The cash balance at the end of the year can be calculated as follows:

=> $12,000 + $2,000 + $7,000 + $4,000

7 0
3 years ago
Read 2 more answers
Gina changes the amount of milk she purchases depending on whether it costs $1,$1.50, or $1.75 a pound. What other information d
Illusion [34]

Answer: how much butter she buys at each price point.

Explanation: The demand curve shows how much a person chooses to buy at different prices. In order to graph the curve, we need to know how much butter Jenna buys when it costs $1, $1.50, and $1.75.

3 0
3 years ago
The distinction between substitutes and complements is
gregori [183]
A substitute is something you replace and use something different in it's place.

Complement is something added to enhance the original
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