A firm faces the following production function, Y = AKa L¹-a (1) Here Y is output, K is capital, L is fixed labour, and A is a measure of technology. The firm uses an optimal amount of capital determined by the condition,

Which of the following production function would exhibit increasing returns to scale? f(K, L) = (K+ L)1/2 f(K, L) = K + L f(K, L) = K1/4+ [1/4 Of(K, L) = KIL None of the above

If a firm has the production function q = f(L, K) = L + 2K, then its technology exhibits:   constant returns to scale   increasing returns to scale   None of the above.   decreasing returns to scale   increasing marginal product

Firm D has production function F(K,L) = aK+2L. Very briefly, what is the interpretation of a in this function?

Consider the production function q=√L+8K^(3).  Starting from the input combination (3,6), does the production function exhibit increasing, constant or decreasing returns to scale if inputs double?

A firm’s short-run production function is in the form of                        q = aLK +(bL^2)K −(cL^3)K , wherea, b, c > 0 are parameters. K is a constant. (a) Derive the marginal product of labor.(b) Find the level of L, expressed in terms of the parameters, at which the law ofdiminishing marginal product kicks in.

A firm’s production function is - y = f(X1, X2)= X11/2 + X1X2 , Where X1≥0, X2≥0 1. Find its returns to scale when X1=1, and X2=1

A firm's production function is given by Q = 20L0.8 K0.2. At that moment, the firm sets = 1,000 and K = 1,000. Which of the following combinations of L and Klies on the same isoquant? L = 1,063.9; K = 698.7 L= 1,063.9; K = 698.7 L=698.7; K = 1,063.9 L = 1,302.3; K = 936.1 L 936.1; K 1,302.3

Find out the maximum possible output for a firm with two units of L and 50 units of k when its production function is Q = 5L + 3K