Consider the production function q = f(L,K) = ALªK®, where A, a, b are positive constants. For what values of A, a, and b are there diminishing marginal returns to labor L? What about diminishing marginal returns to capital? b. For what values of A, a, and b does the production process have diminishing marginal rate of technical a. substitution? c. For what values of A, a, and b are there constant/decreasing/increasing returns to scale?

Consider the production function q = f(L,K) = ALªK®, where A, a, b are positive constants. For what values of A, a, and b are there diminishing marginal returns to labor L? What about diminishing marginal returns to capital? b. For what values of A, a, and b does the production process have diminishing marginal rate of technical a. substitution? c. For what values of A, a, and b are there constant/decreasing/increasing returns to scale?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following statements is (are) TRUE?I. If labor and capital are perfect substitutes in production, the isoquant is a downward-sloping line.II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped.III. If the production function is given by Q = min(14, 7), the firm can produce, at minimum, 21 units of output. IIII, II, and IIIII and II Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
If the production function is f(x1,x2) = x1,x2.a. Show whether this production function exhibits increasing, decreasing or constant returns to scale.b. Show whether the average cost is increasing, decreasing or constant.
Consider the production function q = ((K^α)+(L^α))^β. For this function to have diminishing marginal productivities and increasing returns to scale, it must be the case that: a. α>1 & αβ>1; b. α>1 & αβ1; d. α
I need this in words Not handwritten or no pic
production-function-Q=100k^0.5L^0.5.During the last production of tyres .The inputs were 100 and 25 for capital and labor respectively. What is the marginal product of capital and marginal product of labor based on stated rates.
2. Consider a production function: x(l, k) = Alªk³. Showing all of your work: (a) Under what conditions are the marginal products of labor 1 and capital k positive? (b) Under what conditions are the returns to labor and capital diminishing? (c) Under what conditions are the returns to scale increasing, decreasing, and constant?
A Firm's Optimization with CES Production Function The Constant Elasticity of Substitution (CES) production function is a flexible way to describe how a firm combines capital and labor to produce output, allowing for different levels of substitutability between the two inputs. The elasticity of substitution, denoted by σ, measures how easily the firm can substitute capital for labor (or vice versa) while maintaining the same output level. The parameter p is related to the elasticity of substitution by the formula σ = 1/(1 - p). Now, let's consider a firm that operates for two periods (t and t + 1) and produces output according to the CES production function: F(Kt, Nt) = [aK{ + (1 − a)N]¹º 0
Consider the production function: Q = L1/4 K 3/4 Does this production show increasing, decreasing, or constant returns to scale? Show your work. I. II. Derive an expression for the marginal product of labor. Ш. Show mathematically whether the marginal product of labor is increasing, decreasing, or constant, as the labor input is increased. IV. Derive the average product of labor. Explain whether the average product of labor is increasing, decreasing, or constant, as the labor input is increased.
Company Z has the following data corresponding to the production function. Where (L) is the amount of the labor factor and (K) capital. Q=K0.4 L 0.6 a) Calculate the amount of production, applying the production function for each of the respective values of K and L. K L Q 10 80 30 160 50 320 70 640 90 1200 a) Graph the amount of production obtained on the Y axis, and with the labor input on the Х аxis b) Draw isoquant lines for each level of production, placing capital on the Y axis and labor on the X axis, to better appreciate the displacement.
Consider the following production function for shirts: q = v6 L3/4K/4, where L is worker-hours, and K is sewing machine-hours. a. Compute the marginal products of labor and capital, the average product of labor, and the marginal rate of technical substitution of labor for capital (i.e. how many units of capital are needed to make up for the loss of one unit of labor)? b. Are there diminishing returns to labor (that is, does the marginal product of labor decrease when labor L increases)? What about to capital? Is there diminishing marginal rate of technical substitution (MRTS)? с.
Consider the production function Y AK°Lta, where A is a constant, L is labour, K is capital and a 0. Which of the following is true? O The marginal product of labour is constant O The marginal product of labour is diminishing There are increasing returns to scale O There are decreasing returns to scale
2