Question

Assume a Cobb-Douglas production function of the form: q=10L0.09K0.47. What type of returns to scale LOADING... does this production function exhibit? In this instance, returns to scale equal ?. (Enter a numeric response using a real number rounded to two decimal places.)

Answer #1

A? Cobb-Douglas production function
A. exhibits constant returns to scale.
B. exhibits decreasing returns to scale.
C. exhibits increasing returns to scale.
D. can exhibit? constant, increasing, or decreasing returns to
scale.

Cobb-Douglas Production Function & Cost of
Production
A firm’s production function is given as –
q =
2K0.4N0.6
What kind of returns to scale does this production technology
exhibit? Justify your answer.
Find out the expression for the marginal product of labor.
Find out the expression for the marginal product of
capital.
Find out the expression for MRTS.

Assume that a competitive economy can be described by a
constant-returns-to-scale Cobb-Douglas production function and all
factors of production are fully employed. Holding other factors
constant, including the quantity of capital and technology,
carefully explain how a one-time, 10 percent increase in the
quantity of labor as a result of a special immigration policy, will
change the following: (12 points)
The level of output produced
The real wage of labor
The real rental price of capital
Labor share of total...

For each part of this question write down a Cobb-Douglas
production function with the returns to scale called for and
perform a proof for each that shows the production function has the
correct returns to scale.
Constant returns to scale
Decreasing returns to scale
Increasing returns to scale
Increasing returns to scale

6.7 The production function
Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production
function. This function is widely used in economic research. Using
the function, show the following:
a. The production function in Equation 6.7 is a special case of
the Cobb-Douglas.
b. If a+b=1, a doubling of K and L will double q.
c. If a +b < 1, a doubling of K and L will less than double
q.
d. If a +b > 1, a doubling...

(a) Show that the following Cobb-Douglas production function,
f(K,L) = KαL1−α, has constant returns to scale.
(b) Derive the marginal products of labor and capital. Show
that you the MPL is decreasing on L and that the MPK is decreasing
in K.

Assuming a Cobb-Douglas production function with constant
returns to scale, then, as L rises with K and A constant, it will
be the case
Group of answer choices
Both the marginal product of labour and the marginal product of
capital will fall
Both the marginal product of labour and the marginal product of
capital will rise
The marginal product of labour will rise and the marginal
product of capital will fall
The marginal product of labour will fall and the...

Given the Cobb-Douglas production function for Mabel’s
factory
Q = (L0.4) * (K0.7)
a) Based on the function above, does Mabel’s factory
experiencing
economies or diseconomies of scale? Explain.
b) If the manager wished to raise productivity by 50% and
planned to
increase capital by 25%, how much would she have to increase her
labor
to reach that desired production level?

Suppose that a firm has the Cobb-Douglas production function Q =
12K ^ (0.75) L^ (0.25). Because this function exhibits (constant,
decreasing, increasing) returns to scale, the long-run average cost
curve is (upward-sloping, downward-sloping, horizontal), whereas
the long-run total cost curve is upward-sloping, with (an
increasing, a declining, a constant) slope.
Now suppose that the firm’s production function is Q =
KL. Because this function exhibits (constant, decreasing,
increasing) returns to scale, the long-run average cost curve is
(upward-sloping, downward-sloping,...

Consider the following production function:
q=72LK+15L2−13L3.
Assume capital is fixed at
K=25.
At what level of employment does the marginal product
LOADING...
of labor equal zero?
The marginal product of labor equals zero when
L=nothing.
(Enter a numeric response using an integer.)

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