en the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a) Mathematically find the minimum cost combination of capital and labour to produce a given level of output.b) Does the production function in part (a) show increasing returns to scale, decreasing returns to scale, or constant returns to scale? Explain.  (c) Using isoquants and isocosts, graphically illustrate the effect of an increase in the wage rate, assuming the firm is producing at the same level o

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A: Return to scale define the level of production in the firm , so here we calculate the return to…

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A: Returns to scale decribes how output changes when inputs change by a certain percentage.

Q: Consider the following production function: q = (KL)ª, where a > 0. Answer the following questions:…

A: Given  Production function: q=KLα where α>0             ............ (1)

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A: For Isoquants, we have to take f(x,y)= c a constant

Q: Exercise 2 Do the following production functions exhibit increasing, decreasing, or constant returns…

A: Return to scale: It tells us that if we increase capital and labor by a factor of 't', then how much…

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A: Constant returns to scale condition.Q(λK,λL)=λQ(K,L)

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A: Given : Q = 50L+6L2 −0.5L3

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A: The increasing returns to scale means that the output is rising in a larger fraction than the rise…

Q: Which of the following production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given:  There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

Q: MICROECONOMIC THEORY II, ECON 202- PROBLEM SET I A firm produces a good by using a linear production…

A: Since you have posted the question with multiple sub-parts, we are answering the first three for…

Q: (a) Does this production function exhibit constant, increasing or decreasing returns to scale?…

A: (a) Returns to Scale:The formula for the production function is given by  Q = f(L, K) = AL^a * K^ß.…

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A: Returns to scale refers to the proportionate change in output scale when the input levels are…

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A: Increasing returns to scale occurs when the output increases by a larger proportion than the…

Q: Which of the following production function exhibits constant returns to scale. a)q=KL b)q=KL^0.5…

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A:

Q: Determine the marginal productivity functions, and evaluate them when I Interpret the results. 4 and…

A: Marginal product is the change in output level due to the increment of an additional unit of input.

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A:

Q: onsider a short run production function q = cL+K where the value for c =: sing L units of labour and…

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A: a.  The production function is f(x1,x2) = x1.x2 f(x1,x2) = x1.x2f(λx1,λx2) = λx1 λx2f(λx1,λx2)…

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Q: Give me answer

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.