1. Which of the following production functions display constant returns to scale? In each cas explain your answer. (ii) (iv) Y=aL + bk (i.e. perfect substitutes) Y=min (al, bk) (i.e. fixed proportions or perfect complements) Y ALK(1) (i.e. Cobb-Douglas) = Y-ALK (i.e. Cobb-Douglas) b. For the Cobb-Douglas production function, Y=AL-Kb, find: (i) the two output elasticites; (ii) the two marginal products; the marginal rate of technical substitution; and, the elasticity of substitution. (iv)
1. Which of the following production functions display constant returns to scale? In each cas explain your answer. (ii) (iv) Y=aL + bk (i.e. perfect substitutes) Y=min (al, bk) (i.e. fixed proportions or perfect complements) Y ALK(1) (i.e. Cobb-Douglas) = Y-ALK (i.e. Cobb-Douglas) b. For the Cobb-Douglas production function, Y=AL-Kb, find: (i) the two output elasticites; (ii) the two marginal products; the marginal rate of technical substitution; and, the elasticity of substitution. (iv)
Chapter1: Making Economics Decisions
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![1. Which of the following production functions display constant returns to scale? In each case,
explain your answer.
(1)
(ii)
(iv)
b. For the Cobb-Douglas production function, Y = AL-K', find:
(1)
the two output elasticites;
(ii)
the two marginal products;
the marginal rate of technical substitution; and,
the elasticity of substitution.
(iv)
Y=al+bK (i.e. perfect substitutes)
Y=min (al, bk) (i.e. fixed proportions or perfect complements)
Y=AL-K(-a) (i.e. Cobb-Douglas)
Y=ALK (i.e. Cobb-Douglas)
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2255e29a-5a2a-4583-8da4-49ff5d60466d%2F7fd0b070-3f69-4983-9c9b-5a0d98a882aa%2Fvx129si_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Which of the following production functions display constant returns to scale? In each case,
explain your answer.
(1)
(ii)
(iv)
b. For the Cobb-Douglas production function, Y = AL-K', find:
(1)
the two output elasticites;
(ii)
the two marginal products;
the marginal rate of technical substitution; and,
the elasticity of substitution.
(iv)
Y=al+bK (i.e. perfect substitutes)
Y=min (al, bk) (i.e. fixed proportions or perfect complements)
Y=AL-K(-a) (i.e. Cobb-Douglas)
Y=ALK (i.e. Cobb-Douglas)
D
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