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

Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure meals; the graph of the production function is a line that intersects the vertical axis at a positive amount; this graph is a line with positive slope and passes through the point (4,300)). Can we say that the production function satisfies the law of decreasing marginal returns of labor?True False

The function Q = L0.3 + K0.7  is an example of _____ returns to scale of production.

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 estimates its long-run production function to be Q = -0.0050 K3L3 + 15 K2L2 Suppose the firm employs 10 units of capital. At units of labor, average product of labor begins to diminish? A) 350 B) 66.67 C) 100 D 150 E) 1500