Consider the following production functions and match them to the word that describestheir returns to scale.Production function A: F(L,K) = K²LProduction function B: F(L,K) = 25K + 10LProduction function C:F(L,K) = (KL)¹2Production function D: F(L,K) = 5L² + L¹/2K1/2Production Function A✔ Choose...DecreasingProduction Function BConstantProduction Function CIncreasingProduction Function DChoose.. +

When considering the production function and test their returns to scale. We multiply the production…

Consider the following production functions and match them to the word that describes their returns to scale. Production function A: F(L,K) = K²L Production function B: F(L,K) = 25K + 10L Production function C: F(L,K) = (KL)½ Production function D: F(L,K) = 5L² + 1/2K1/2 oduction Function A ✓ Choose... oduction Function B roduction Function C Decreasing Constant Increasing

Consider the following production functions and match them to the word that describes their returns to scale. Production function A: F(L,K) = K²L Production function B: F(L,K) = 25K + 10L Production function C: F(L,K) = (KL)½ Production function D: F(L,K) = 5L² + 1/2K1/2 oduction Function A ✓ Choose... oduction Function B roduction Function C Decreasing Constant Increasing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the following production function: Q = 100L0.5K0.5 Subject to the budget constraint 5L + 10K = 75; where L is labour and K is capital. If the optimal quantities of labour and capital were employed, then the total output is approximately: a. 530 units b. 1371 units c. 2150 units d. 604 units
Maize is produced according to the production function q = 100(K°*L°) %3D Starting with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing. (i) (ii) Compute the marginal rate of technical substitution of labour for capital. (iii) Does this production function exhibit increasing, decreasing or constant returns to scale?
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Which of the following production functions exhibits increasing returns to scale in the factors of production K and L? a. y = ĀK0.3 L0.75 b. y = Kª(ĀL)-e,0 < a < 1 c. y = ĀKO.3L0.3 d. y = ĀK/4 + L³/4
QUESTION 1 For the production function Qs = K0.6L0.7 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
You are given the production function: Q(K,L)=10KαLβ What is the average product of labour, holding capital fixed at K? Simplify fully
Consider the production function q=√L+8K^(3). Starting from the input combination (3,6), does the production function exhibit increasing, constant or decreasing returns to scale if inputs double?
The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
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