State Whether You Agree or Disagree with the following Statements Give Reason to Support Your Answer

d) I do not believe that a production function with diminishing marginal rewards for inputs should also have diminishing economies of scale. Economies of scale are not incompatible with lower yields for a single factor of production. At a certain level of inputs, all manufacturing processes have diminishing returns on a single factor. b) I disagree that the expansion path of a Leontiff production function is linear. As shown in the figure, the expansion of a linear homogeneous production function is always a straight line through the origin. This suggests that, regardless of the level of output, the shares between the factors used will always be the same as long as factor prices remain stable. c) I agree that a production function with a constant substitution elasticity (CES) will also have CES in its positive monotonous transformation. How elastic is the replacement of CES technology in general? The substitution elasticity in the CES function is constant, but not necessarily equal to the unit. It has a range from 0 to 1. The CD function, on the other hand, is associated with the elasticity of one.

Therefore, the CD function is a subset of the CES function. What I was thinking about was the decision fatigue associated with an overly complicated scale. In fact, I just filled out a questionnaire on the Likert scale this morning, 5 options, and although I took a lot of time to review my exact level of satisfaction for the first question, I really didn`t care on the 10th (obviously I have very little stamina..). I just wanted to say “positive” or “negative” and clicked on the same column over and over again, no matter how satisfied exactly I felt. I think this must be related to decision fatigue, which I first read in an NYT article a few months ago and now see everywhere! Of course, the interesting thing about how researchers studied real-world applications to see how sellers (for example) adjust their list of questions to take advantage of people`s ability to make complex decisions for a short period of time, after which they tend to make “safe” decisions. Based on these studies, I would expect people to use the full scale for the first few questions and perhaps be set to “don`t know” for the last part of the questionnaire. Indicate whether or not you agree with the following statements. Give it, I`m curious to know if in your recent research you came across anything about the order of options – the positive or the negative first (that is, strongly agree as the first or last option). a) I agree that if a competing company loses money in the short term, it will cease operations. A business must continue to operate as long as its price (average income) can cover its average variable costs according to the shutdown rule.

If the total turnover of the company is less than the variable costs in the short term, the company must be closed. The shutdown may reduce variable expenses to zero, but the company has already paid fixed expenses in the near future. Even if the company does not produce a quantity, it still loses money because it has to pay its fixed expenses. Hi Dave, nice post! Another option is to present people with a visual indication of agreement/disagreement and ask them to quantify it. Examples: images of smileys (the more smileys there are, the more you agree); or stake large coins – the larger the battery, the more the person agrees. b. The expansion path of a Leontiff production function is linear. c. If a production function has a constant substitution elasticity (CES), its positive ÐμÑ ÑлÐμкÑÑÐ3/4Ð1/2Ð1/2Ð3/4й вΜÑÑÐ ̧Ð ̧ WILLIAM MA is a mathematics consultant and former chair of the mathematics department of the Herricks School District in Long Island. He has also taught as an associate professor of mathematics at Baruch College, Columbia University, and Fordham University.

Ð1/2D°ÑÐμÐ1/4 кÑÑпÐ1/2DμйÑÐμÐ1/4 в Ð1/4ÐÐ ̧ÑÐμ Ð1/4агаз Ð ̧Ð1/2Ðμ пÑÐμÐ ́Ñав»ÐμÐ1/2ÑлÐμкÑÑÐ3/4Ð1/2Ð1/2ÑÐμ кÐ1/2Ð ̧Ð̧Ð̧, кÐ3/4ÑÐ3/4ÑÑÐμ Ð1/4Ð3/4жÐ1/2Ð3/4 ÑÐ ̧ÑаÑÑв бÑаÑз ÐμÑÐμ, Ð1/2а плÐ1/2ÑÐμÑÐ1/2Ð3/4Ð1/4ÐÐ, ÐμлÐμÑÐ3/4Ð1/2Ðμ Ð ̧лл̧ ÑпÐμÑÐ ̧алÑÐ1/2Ð3/4Ð1/4 ÑÑÑÐÐ3/4йÑÑÑвÐμ. Jane R. Burstein taught English for thirty-six years at Herricks High School in New Hyde Park, New York. She was an ACT and SAT tutor and reader for the Advanced Placement English Language exam for twenty-five years. d. A production function showing diminishing marginal returns for inputs, necessarily a. A competitive company will cease operations in the short term if it suffers losses. .