Floppy Corp Produces Software Using Two Inputs, Large (700 MB)discs

question 47

Essay

Floppy Corp produces software using two inputs, large (700 MB)discs, L, and small (210 MB)minidiscs, S. Its production function is given by: Q = (L/2)+ S where Q is output.
i)Does the production function exhibit constant, increasing, or decreasing returns to scale?
ii)Draw isoquants for Q = 2 and Q = 3. What is the firm's marginal rate of technical substitution?
iii)Suppose small disks cost $3 each and large disks cost $1 each. How many of each type of disk will Floppy Corp use to produce Q = 2? Q = 3?
iv)What is the firm's cost function when small disks cost $3 and large disks cost $1?

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Definitions:

Large-Scale Event

An event, often involving extensive planning and coordination, that attracts a large number of participants or attendees.

Disrupts Routines

Refers to events, technologies, or actions that significantly alter or interrupt established processes or habits.

Social Goals

Objectives that aim to improve society and the welfare of its citizens, focusing on issues such as equality, education, and environmental sustainability.

Dormant Stage

A period during which an organism, seed, or entity is metabolically inactive or not showing visible growth, awaiting favorable conditions for activity.