0.5 Consider the following production function: ƒ(2₁, 22) = 21 +22 a) What kind of returns to scale does this production function exhibit? a. Increasing returns to scale b. Constant returns to scale c. Cannot be determined from the given information d. Decreasing returns to scale b) At (21, 22) = (4,4), the technical rate of substitution between the two inputs 2₁ and 22 is? [note: it is a positive number]

0.5 Consider the following production function: ƒ(2₁, 22) = 21 +22 a) What kind of returns to scale does this production function exhibit? a. Increasing returns to scale b. Constant returns to scale c. Cannot be determined from the given information d. Decreasing returns to scale b) At (21, 22) = (4,4), the technical rate of substitution between the two inputs 2₁ and 22 is? [note: it is a positive number]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume a Cobb-Douglas production function of the form: 3 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal This production function exhibits q=10L0.28K0.59 (Enter a numeric response using a real number rounded to two decimal places.) OA. increasing returns to scale. OB. constant returns to scale. OC. initially decreasing but then constant returns to scale. O D. decreasing returns to scale. O E. initially constant but then decreasing returns to scale.
1
The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
Suppose that a production function for labor (L) and capital (K) is given by: q(L,K) = L K0.2 . Does this production function exhibit constant, increasing, or decreasing returns to scale? A. Increasing returns to scale B. Constant returns to scale C. Decreasing returns to scale
1. Given the production function: q = 2KL, (a) Fill in the table below which has information on the short-run production function, the marginal product of labor (MPL), and the average product of labor (APL) if capital is held fixed at 3 units in the short-run. Labor Quantity of Output (MPL) (APL) 0 1 4 9 16 25 (b) Plot the short-run production function. (c) Plot the marginal and average products of labor on a new graph. (d) Does the law of diminishing marginal returns apply? If so, at what level of labor do diminishing marginal returns set in? (e) What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL)? (f) If the amount of capital increased to 6 units, what would happen to your graphs in part C)?
Question 5 Which of the following production functions exhibit increasing return to scale? Decreasing return to scale? Constant return to scale? Note: X1 and X2 are inputs a. Y = AXq.5X3 b. Y = 0.5X, + 10 c. Y = AX,X2 d. Y = 3X1 + 7X2 e. Y = (-AX? – BX; + CX,X2)0.5
Consider the followng production function: 1 2 9 = x?x where x, and x, measure the employed quantities of input #1 and input #2, respectively. (a) Solve for and graph this firm's isoquant at q isoquant. 10. Please label three points along this (b) Does this production function exhibit increasing, decreasing, or constant returns to scale? Explain. Please corroborate your answer using a set of isoquants when the quantity of both imputs gets doubled. Note: Be sure to plot x2 along the y-axis.
Could you solve d,e,f ? Thank you
3
Lesson 7- Production Question 8
Which of the following production functions exhibit decreasing returns to scale? Select all that apply. O Q = 2K0.4 L0.6 O Q=0.5 K0.3 0.7 OQ=0.7 K0.4 L0.3 = K0.25 L 0.5 Q = 0.3 K0.5 L0.7 OQ=0.2 K0.3 L0.8
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