| Question | A genealogical firm called Roots produces its output using only one input. Its production function is f(x) = ?x. (a) Does the firm have increasing, constant, or decreasing returns to scale? (b) How many units of input does it take to produce 10 units of output? ______. If the input costs w per unit, what does it cost to produce 10 units of output? ______. (c) How many units of input does it take to produce y units of output? _____. If the input costs w per unit, what does it cost to produce y units of output? ______. (d) If the input costs w per unit, what is the average cost of producing y units? AC(w, y) = ____. |
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| Subject | business economics |
