Using the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as:Q= K0.45 L0.55Where Q = units of output; L = units of Labor; and K = units of capitalWhat are the marginal products of Labor and Capital?Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale?

The production function shows the technical relationship between input factors and output. The…

Answered: Using the annual data for the period of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as:

Q= K^0.45L^0.55

Where Q = units of output; L = units of Labor; and K = units of capital

What are the marginal products of Labor and Capital?
Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya
How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale?

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