Question

A firm's production function is Q = 4L^(3/4) * K^(1/2) (a) Does this production function have...

A firm's production function is Q = 4L^(3/4) * K^(1/2)

(a) Does this production function have constant, in creasing, or decreasing returns to scalo?
(b) Determine MRTS L,K for this production function. (c) What is the elasticity of substitution for this pro duction function? (Hint: what type of production function is this ?)
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Does the Production Function Q = min(K,4L) have increasing, constant or decreasing returns to scale?
Does the Production Function Q = min(K,4L) have increasing, constant or decreasing returns to scale?
2. A firm has the following linear production function: q = 5L + 2K a. Does...
2. A firm has the following linear production function: q = 5L + 2K a. Does this firm’s production function exhibit diminishing returns to labor?    b. Does this production function exhibit diminishing returns to capital? c. Graph the isoquant associated with q = 20. d. What is the firm’s MRTS between K and L? e. Does this production technology exhibit decreasing, constant, or increasing returns to scale?
A firm has the production function: Q = L 1 2 K 1 2 Find the...
A firm has the production function: Q = L 1 2 K 1 2 Find the marginal product of labor (MPL), marginal product of capital (MPK), and marginal rate of technical substitution (MRTS). Note: Finding the MRTS is analogous to finding the MRS from a utility function: MRTS=-MPL/MPK. Be sure to simplify your answer as we did with MRS. A firm has the production function: Q = L 1 2 K 3 4 Find the marginal product of labor (MPL),...
Suppose a firm's production function is given by LaTeX: Q\left(L,K\right)=4L^{0.65}K^{0.35}Q ( L , K ) =...
Suppose a firm's production function is given by LaTeX: Q\left(L,K\right)=4L^{0.65}K^{0.35}Q ( L , K ) = 4 L^0.65 K^0.35. The wage is w= 25/ hour and the rent for capital is r= 25/hour. To produce 350 units per hour, what is the minimum hourly cost of production? Enter to the nearest $0.1. [number only, no $ sign]
A firm produces output according to the production function. Q=sqrt(L*K) The associated marginal products are MPL...
A firm produces output according to the production function. Q=sqrt(L*K) The associated marginal products are MPL = .5*sqrt(K/L) and MPK = .5*sqrt(L/K) (a) Does this production function have increasing, decreasing, or constant marginal returns to labor? (b) Does this production function have increasing, decreasing or constant returns to scale? (c) Find the firm's short-run total cost function when K=16. The price of labor is w and the price of capital is r. (d) Find the firm's long-run total cost function...
Suppose a firm’s production function is given by Q = 2K^1/2 * L^1/2 , where K...
Suppose a firm’s production function is given by Q = 2K^1/2 * L^1/2 , where K is capital used and L is labour used in the production. (a) Does this production function exhibit increasing returns to scale, constant returns to scale or decreasing returns to scale? (b) Suppose the price of capital is r = 1 and the price of labour is w = 4. If a firm wants to produce 16 chairs, what combination of capital and labor will...
1. Consider a firm with the following production function: Q= 60 L^2 K^1/2 -4L^3 The firm...
1. Consider a firm with the following production function: Q= 60 L^2 K^1/2 -4L^3 The firm is operating in the short run with a fixed capital stock of K=4 Use this to answer the following questions: 2. Suppose the firm in the previous question is able to increase its capital to K ¯ = 9.   After what quantity of labor does diminishing marginal returns now occur? What is the maximum output the firm can now produce? After what number of...
Consider the production function Q = f(L,K) = 10KL / K+L. The marginal products of labor...
Consider the production function Q = f(L,K) = 10KL / K+L. The marginal products of labor and capital for this function are given by MPL = 10K^2 / (K +L)^2, MPK = 10L^2 / (K +L)^2. (a) In the short run, assume that capital is fixed at K = 4. What is the production function for the firm (quantity as a function of labor only)? What are the average and marginal products of labor? Draw APL and MPL on one...
Determine whether the following production functions exhibit increasing, decreasing or constant returns to scale. a. Q...
Determine whether the following production functions exhibit increasing, decreasing or constant returns to scale. a. Q = L + K b. Q = 10KL c. Q = L + K1/2L 1/2 + K d. Q = 10K1/4L 1/4
Suppose a competitive firm’s production function is Y= 20 L1/2 K1/3. L is Labor , K...
Suppose a competitive firm’s production function is Y= 20 L1/2 K1/3. L is Labor , K is capital and Y is output. a) (4) Find the marginal product of labor and capital. b) (4) What is Marginal Rate of technical Substitution of Labor for Capital? c) (2) Does this production function exhibit increasing, decreasing or constant returns to scale? Show your work.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT