Suppose the production function of an item is Q = 3L + 2K. When the inputs are doubled in this production function, the output is also doubled. which of the following statements are true? Statement 1: Q will increase by 2 if K increases by 1, Statement 2: Q will increase by 3 if L increases by 1,
Q: Consider the following production function: Q = 2K + 5L. The price of capital is €10 per unit and…
A: As per the question ,…
Q: Consider a competitive, closed economy with a Cobb-Douglas production function with parameter α =…
A: The production function shows the relationship between the inputs and the output. In other words, it…
Q: 1. Given the production function Q = f(L,K) = KL2 – L3 , where Q is output and L and K are the labor…
A: "Since you have asked multiple question ,we will solve the first question for you.If you want any…
Q: Margeʹs Hair Salon production function is Q = f(K, L) = K0.5L0.5 where K is the number of hair…
A: As given Production function is Q = K0.5L0.5 Return to scale of production function is determined by…
Q: Suppose the production function is Y = f(K, AN) and the economies of scale are invariant . When will…
A: Y = f(K, AN)
Q: With the Cobb-Douglas production function Y=zK1/4nd374, if both capital and labour increase by 20%,…
A: Answer: Given, Production function: Y=zK14Nd34 Increase in both capital and labor = 20% Value of K…
Q: Consider a firm who owns capital K and has the following production technology Y = zF(K, N)= 2K³N³,…
A: A production function is a mathematical equation that expresses the relationship between the number…
Q: The production function feature called "increasing returns to scale" means that if we increase…
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Suppose the production function is given by Q = 5K - 3L What is the average product of capital when…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: For the production function Q = 0.7L + K, returns to scale: a. Can be increasing, decreasing, or…
A: A production function q=f(L,K) is in constant return to scale if q'=f(λL,λK)=λf(L,K)=λq
Q: Determine the returns to scale implied by each of the production function. Q = 0.4Y1/2 +…
A: Q (Y,A,B) = 0.4Y1/2 + 0.3A1/4B1/4 + 2.0B1/2 To determine the returns to scale, we will multiply Y,…
Q: Which of the following production functions exhibit constant returns to scale? In each case y is…
A: Given: The production functions are: 1y=K12L132y=3K12L12(3)y=k12+L12(4)y=2K+3L
Q: Given the production function for labor and capital: Q = L^½(K^½), and q = 100. If the firm wants…
A: Production function:- Production function can be defined as an economic equation that represents the…
Q: Given the production function Q = min (4K, 3L), what is the average product of capital when a units…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Assuming that the production function [Y=A(K, L, N, H)] exhibits constant returns to scale we can…
A: In economics, the term "returns to scale" basically refers to the variation or change in…
Q: For the following items, consider the given production schedule. Here, the production of a good (Q)…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The equation of the production function for calculators is q = 5KL + 30L, where q is total output, K…
A: Production function is done by 4 factors , land , labor , capital and entrepreneur , so here by…
Q: Some economists believe that the US. economy as a whole can be modeled with the following production…
A: As we know that Cobb-Douglas production function models represents the relationship among production…
Q: The production function is the relationship between the maximum amount of output that can be…
A: A production function represents how firm transforms inputs into outputs.
Q: Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. (…
A: A production function is a functional relationship between the inputs which are used in the process…
Q: The equation below is a production function, Q = (200)L + (100)K – (0.2)L2 – (0.1)K2 , where…
A: Production function, Q = 200L + 100K – 0.2L2 – 0.1K2To find the marginal productivity of labor…
Q: 3.1 Consider the following production function: F(K,L) = K®.3L0.7 State if this function exhibits…
A: disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…
Q: Consider the following production function: Q = 2K + 6L where K represents Capital, L represents…
A: The linear production shows inputs are perfect substitutes, meaning only one of them is used.
Q: Suppose the production function is given by Q(L,K)=L^1/2K^1/2 Assuming capital is fixed ,find APL…
A: Answer: Given, Production function: QL,K=L12K12 To find: APL and MPL APL (Average product of labor):…
Q: If the production function is Q = 30 + 22L + 44K, what’s the most you can produce with 9 workers (L)…
A: Production function is the explanation of procedure used in producing the goods and services in the…
Q: Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output,…
A: A simple linear equation is also known first degree equation. These equations will have a homogenous…
Q: Suppose that the production function q = f(L,K), shows that if L = 3 and K = 5 then q = 10. Is it…
A: Production Function 10Q = 3L+5K 10 quantities of a product is made with 3 units of labour and 5…
Q: Suppose the production function for widgets is given by: Q = KL - 0.8K² - 0.2L² where Q represents…
A: Answer: Given, Production function: Q=KL-0.8K2-0.2L2 (a). Average product of labor (APL): APL refers…
Q: Question 24 Consider the following production function when K is fixed. (This is a description of…
A: False, the production function does not satisfy the law of decreasing marginal returns to labor.
Q: Suppose the production function for widgets is given by KL – 0.5K2 – 0.1 L2 , where q represents the…
A: Given production function FK,L=q=KL-0.5K2-0.1L2 .......... (1) Where q represents the annual…
Q: The production function Q=KOLP where 0 ≤ a, ß≤ 1 is called a Cobb - Douglas production function.…
A: When we increase the all factors of production in a given proportion (t), then the resulting output…
Q: Given the linear production function: Log (Q) = Log (0.5) + Log (L) + Log (K) Where Q is the level…
A: Part a) Log (xy) = log (x) + log (y) Log (Q) = Log (0.5) + Log (L) + Log (K) Log (Q) = log ( (0.5)(…
Q: Consider the production function Y = K1/2 N12 a. Compute output when K = 49 and N = 81 b. If both…
A: Plugging given values, Y = (49)1/2 x (81)1/2 Y = 7 x 9 Y = 63
Q: Y=$10 trillion, K=$10 trillion, L=100 million workers Cobb-Douglas Production Function What is…
A: Production function shows the relationship between the physical output and physical inputs.…
Q: The production function for soy beans is q = K 0.25 L 0.45. Dose this production function have…
A: Given Production function. q = (K)^0.25 × (L)^0.45
Q: Find the marginal product of capital for the following production function and show if it has…
A: Returns to scale explain how production evolves over time in response to an increase in all inputs.…
Q: In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm…
A:
Q: Suppose the production function is given by Q = 5K + 3L. What is the average product of capital when…
A: Given: The production function is: Q = 5K + 3L
Q: Q = A Lx Ky (Quantity, A, Labor, Capital) If A; X; Y are all positive numbers, does the…
A: The production function exhibits Increasing return to scale, Constant return to scale or Decreasing…
Q: Consider the production function q=√L+8K^(3). Starting from the input combination (3,6), does the…
A: Given information: Production function q=√L+8K3 Input combination 3,6 (L = 3 and K = 6)
Q: When do you think production is on the part of increasing returns on the production function?…
A: Returns to scale is an economic term that defines what happens to long-run returns as production…
Q: Consider the following Cob-Douglas production function: f(k.1) = K°P°, where a 20 and > 0. 1. Show…
A: a) f(k,l) = kαlβf(nk,nl) = (nk)α(nl)β f(nk,nl) =nαkαnβlβf(nk,nl) =nα+β*(kαlβ)It is given that α>0…
Q: In each blank type increasing, decreasing or constant to describe the returns to scale of the given…
A: Production function is said to have constant returns to scale when increasing the inputs by some…
Q: Given the following production function Y=X+4X^2-0.2X^3. At what level of X does the Total physical…
A: Y = x + 4x2 -0.2x3 MPP=dY/dx = 1 + 8x - 0.6x2 APP = Y/x = 1 + 4x -0.2x2 (1)MPP is maximum when…
Q: In economics and econometrics, the Cobb-Douglas production function is a particular functional form…
A: "A production function expresses the technological relationship between output produced and the…
Q: Consider the following production function: Q = 3K + 6L where K is Capital, L is Labour and Q…
A: Given production function Q=3K+6L Where K is capital and L is labor
Q: QUESTION 8 Consider the production function F(A,K) = A*In(K), where A = 3 is a constant. What is the…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Q1 a) Given a production function depicting the response of paddy rice tofertilizer application,Y = 3X+ 9X2 - X3(i) Calculate the exact MPP and APP.(ii) At what level of fertilizer input(X) does MPP, APP and TPP reachtheir maximum values?(iii) At what level of fertilizer input will r = 0? And what is the valueof TPP at that level?(iv) If the farmer increases the amount of fertilizer in his riceproduction in his area of diminishing returns, explain whether ornot total production will increase or decrease.Q1 a) Given a production function depicting the response of paddy rice tofertilizer application,Y = 3X+ 9X2 - X3(i) Calculate the exact MPP and APP.(ii) At what level of fertilizer input(X) does MPP, APP and TPP reachtheir maximum values?(iii) At what level of fertilizer input will r = 0? And what is the valueof TPP at that level?(iv) If the farmer increases the amount of fertilizer in his riceproduction in his area of diminishing returns, explain whether ornot total production will increase or decrease.b) Explain the economic significance of farm records.Q2 a) What are the major objectives of agricultural marketing?b) Explain how one can evaluate the efficiency of a marketing situation.(04.Suppose we are given (he constant returns to scale (CES) production function q= { ßa + aa }1/a a. Show that the marginal product of Beta is (g/B) and marginal product of Alpha (q/a)** b. Show that RTS = (2/B); I lence or otherwise shov that the ò =-1/(1-a) 1-a
- 6 A production function has two inputs, K and L. At the current time, at the current level of output, Mp(L) = 60 and MP(K)= 30; the price of L is $20/unit-hour and the price of K is $5/unit. a. is the current combination of K and L optimal? How do you know? b. If it is optimal, what is the MP per dollar spent on K? If it is NOT optimal, how should you change your purchases of K and L to reach the cost minimum? Explain.Suppose there are two inputs for production, labor and capital. The firm’s production process isdefined by the following production functiony=f(L,K).Howdoweinterpretthefirm’smarginalrateof technical substitution? a)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same cost level b)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm produces one more unit of output c)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same level of production d)a) and b) are correct e)a) and c) are correctAssume the production function is given as Y = 4X + 3X ² - 0.2X 3 %3D Where Y is amount of output produced and X is levels of input used, Then, A. Calculate the APx, MPx and Ep B. Determine the value of X that maximize APx and MPx and calculate Ep when APy and MPx maximum value of X X
- What is the marginal physical productivity (MPP) of the inputs given the function Q = 18z7 + 2x1#2 + 2x3? Select one: O a. MPP = 36x1 + 2x2 MPP, = 2x1 + 4x2 ОБ. МP, — 36+ 2г2 +2 MPP, = 2x1 + 4x2 %3D %3D O. MPP, 36x1 + 2x1 %3D MPP, = 2x1 + 4x1 %3D O d. MPP MPP, = 2x2 + 4x2 36z1 + 2x1 %3D %3DIf capital and labour are perfect complements then the marginal products of capital and labour are undefined A True Faise Question 16 A firm uses 10 units of labour and 20 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product of labour must be 0.25 True B False Question 17 Afirm uses 10 units of labour and 30 units of capital to produce 10 units of output. The marginal product of labour is 05. If there are constant returns to scale the marginal product of labout must be 0.25 A True False1. Consider the production function Q=K³/ª L/4 Further suppose that capital is fixed at 16 units. Answer the following questions: a. Find Q when L =16 units. What is the output (Q) when L increases to 81 units? e b. Find the average product of labor when L when L increases 81 units? 16 units. What is the average product of labor %3D c. Find the marginal product of labor when L 16 units. What is the marginal product of labor when L increases 81 units? d. Show that doubling all the inputs doubles the output.
- Complete the table directly below by calculating MP and AP. Inputs ofL TP MP AP 0 01 152 343 514 655 746 807 838 82 Plot the TP, MP and AP and explain in detail the relationship between eachpair of curves. Explain why PM first rises, then declines, and ultimatelybecomes negative.What is the marginal physical productivity (MPP) of the inputs given the function Q = 12x + 2x1x2 + 2x²? Select one: O a. MPPT₁ 24x1 + 2x1 MPP₂ = 2x1 + 4x₁ O b. MPPT₁ = 24+ 2x₂ + 2 MPPT₂ = 2x1 + 4x2 OC. MPPT₁ MPPT2 O d. MPPT₁ MPPT - 24x₁ + 2x1 2x2 + 4x2 Time 24x₁ + 2x₂ 2x₁ + 4x2 Next pLet S represent the amount of steel produced (in tons). Steel production is related to the amount of labor used () and the amount of capital used () by the following function: S- 20 L0 C0.7 In this formula L represents the units of labor input and Cthe units of capital input. Each unit of labor costs $50, and each unit of capital costs $100. (a) Formulate an optimization problem that will determine how much labor and capital are needed in order to produce 50,000 tons of steel at minimum cost. If your answer is zere, enter "p" Min 40 120 s.t. 20 S0000 (b) Solve the optimization problem you formulated in part a. Hint: When using Excel Solver, start with an initial >oand C0 Do not round intermediate calculations. Round your answers to the nearest whole number 2991 2318 Cost S 397448 ide Feedback