Question

In the production theory, we discussed the returns to scale. Please describe what kind of returns...

In the production theory, we discussed the returns to scale. Please describe what kind of returns to scale you have for the given production function: a. (15 points) ? = ?? ? ?? ? ? (use the L= and K= to double your inputs) b. (10 points) ? = ?? + ?? (use the L= and K= to double your inputs)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Please classify each the following production functions as increasing returns to scale (IRS), constant returns to...
Please classify each the following production functions as increasing returns to scale (IRS), constant returns to scale (CRS), or decreasing returns to scale (DRS). Technique: substitute tK and tL for K and L and check the resulting effect on output (that is, compute q after the inputs double). Remember the rules that (ab)n = anbn, and aman =am+ n. Show your work. q = L + K0.35L0.65 q = 2 + K0.35L0.65 q = L K q = L +...
A constant returns to scale production function means that if all inputs are halved then output...
A constant returns to scale production function means that if all inputs are halved then output will A. double B. fall but not by half C. incrfease but not double D. fall by half
What is the difference between diminishing returns and decreasing returns to scale? What kind of returns...
What is the difference between diminishing returns and decreasing returns to scale? What kind of returns to scale are possible or observed in your organization? Why? An expanding company is a sign of increasing returns to scale while a company that is downsizing is usually experiencing decreasing returns to scale.Is your clothing firm expanding or downsizing? Can you assess the shape of the long-run average cost curve for your organization? you do not need to estimate the cost function, merely...
1) The production function Q = 50K0.25L0.25 exhibits A. increasing returns to scale. B. constant returns...
1) The production function Q = 50K0.25L0.25 exhibits A. increasing returns to scale. B. constant returns to scale. C. decreasing returns to scale. Answer D. increasing, then diminishing returns to scale. E. negative returns to scale. 2) The production function Q = 50K0.25L0.75 exhibits A. increasing, then diminishing returns to scale. B. increasing returns to scale. C. decreasing returns to scale. D. constant returns to scale. Answer E. negative returns to scale. could you please explaing me the reason of...
(a) Show that the following Cobb-Douglas production function, f(K,L) = KαL1−α, has constant returns to scale....
(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.
a) Show that the following Cobb-Douglas production function, f(K,L) = KαL1−α, has constant returns to scale....
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.
Suppose that you are given the following production function: Q = 100K0.6L0.4 For each of the...
Suppose that you are given the following production function: Q = 100K0.6L0.4 For each of the following production functions, determine whether returns to scale are decreasing, constant, or increasing when capital and labor inputs are increased from K = L = 1 to K = L = 2. a. Q = 25K0.5L0.5 b. Q = 2K + 3L + 4KL
The production function of good x is as follows: Q = (L^0.5)(K^0.4) a. Does this production...
The production function of good x is as follows: Q = (L^0.5)(K^0.4) a. Does this production function have increase, constant or decreasing returns to scale? _______(Answer either IRS, DRS or CRS) b. Calculate the slope of the isoquant when the entrepreneur is producing efficiently with 10 laborers and 20 units of capital. Slope = ______(Answer as a fraction or decimal.) c. If we increase the amount of labor we use in our production process from 10 to 15 units, how...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale...
1. Long run average costs rise as output (q) increases Select one: a. Economy of Scale b. Decreasing Returns to Scale c. Increasing Returns to Scale d. Constant Returns to Scale e. Diseconomy of Scale 2. A production function where the MRTS is constant at all points. Isoquants are straight lines. Select one: a. Production Function b. Isoquant c. Perfect Substitutes Production Function d. Isocost Line e. Technology Function f. Fixed-Proportions Production Function 3. A production function with L-shaped isoquants...
An electronics plant’s production function is Q = L 2K, where Q is its output rate,...
An electronics plant’s production function is Q = L 2K, where Q is its output rate, L is the amount of labour it uses per period, and K is the amount of capital it uses per period. (a) Calculate the marginal product of labour (MPL) and the marginal product of capital (MPK) for this production function. Hint: MPK = dQ/dK. When taking the derivative with respect to K, treat L as constant. For example when Q = L 3K2 ,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT