Returns to Scale
Returns to Scale: Overview
This topic covers concepts, such as, Decreasing Returns to Scale, Returns to Scale, Increasing Returns to Scale and Constant Returns to Scale etc.
Important Questions on Returns to Scale
Which of the following is true in the context of returns to scale?
How would you find the maximum output for a firm using a production function \(Q = 5L + 2K\) if one input is zero and the other is non-zero?
Given the production function \(Q = 5L^{ rac{1}{2}}K^{ rac{1}{2}}\), how would you calculate the maximum possible output with specific units of labour and capital?
Given a firm's short-run marginal cost schedule and total fixed cost, how can you find the TVC, TC, AVC, and SAC schedules?
How can you derive the total product and marginal product schedules from the average product schedule of labour, assuming the total product is zero at zero labour employment?
Why does the SMC curve cut the AVC curve at the minimum point of the AVC curve?
