# Questions tagged [production-function]

A function whose value is the produced quantity associated with a given vector of factor inputs. The production function represents the technology available to the firm.

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### Is increasing Average Product(AP) always implying increasing Marginal Product(MP) in microeconomics?

I'm studying microeconomics and came across a statement that I'm not sure is correct: "If average product ($AP = F(X)/X$) always increases from $X=0$, then marginal product ($MP = F'(X)$) also ...
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### Calculating Production Functions using Input Prices

I am trying to estimate production functions and want to correct the endogeneity problem from direct estimation. I found from these notes that it is possible to estimate production functions using ...
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### Costs and Increasing returns to scale

If a firm has increasing returns to scale, does that mean that "costs" will always decrease as production increases. If so, does that mean the firm will end up being a monopolist? And what ...
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### any contingent labor and capital demand functions shortcuts for cobb-douglas functions?

for cobb-douglas utility functions, aI/px and (a-1)I/py gives the marshallian demand for x and y. Are there any parallels for cobb-douglas production functions, q = x^a * y^(1-a) ? Thank you.
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### Is CES production representing the average of inputs?

I know that the Constant elasticity of substitution production function is given by: $$Q=\gamma\left[\delta L^{-\alpha}+\left(1-\delta\right)K^{-\alpha}\right]^{\frac{-1}{\alpha}}$$ where $\gamma$ is ...
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