Question

Consider the following production function *q*
= *K*^{2} + *L*^{2}*.*

- Does this production function exhibit constant, increasing or decreasing returns to scale?)
- Find an expression for the marginal rate of technical substitution. Does this production function exhibit diminishing marginal rate of technical substitution? Explain

Answer #1

q = K^{2} + L^{2}

Increase both inputs (i.e., K and L) by

It implies that this production function exhibit increasing return to scale.

(b)

MRTS = (MPL/MPK)

MRTS = 2L / 2K

**MRTS = L/K**

The change in MRTS due to change in L is positive (or greater than 0). It implies that production function exhibit cosntant marginal rate of technical substitution.

production function does not exhibit diminishing marginal rate of technical substitution.

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?

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...

Does the Production Function Q = 6K + 3L have increasing,
constant or decreasing returns to scale?

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...

Does the Production Function Q = min(K,4L) have increasing,
constant or decreasing returns to scale?

The production function Q = 20K0.75L0.25 exhibits
A decreasing returns to scale.
B constant returns to scale.
C increasing returns to scale.
D increasing, then diminishing returns to scale.
E negative returns to scale.

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 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.

Do the following production functions exhibit increasing,
decreasing, or constant returns to scale? Explain your answer
a. Q=16L^0.4K^0.6+K+2
B. Q=L^0.4+K^0.6

1. Given the following production functions determine whether
the production functions exhibit increasing, decreasing, or
constant returns to scale for all levels of output.
a) Q = L0.3K0.2
b) Q = (L+0.01K)0.8
c) Q = min[2L,K]

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 6 minutes ago

asked 20 minutes ago

asked 35 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago