O Suppose you are a hard-working software engineer that works 2000 hours a year, which you allocate between meetings (m), learning activities (1) and working effort (e) doing actual coding tasks (m + 1 + e = 2000). a. Write down your personal production function f(m, 1, e). Briefly describe how your output depends on the three activities. b. Does your production function exhibit increasing, decreasing or constant returns to scale (a all or some output levels)? Explain. c. Suppose a new technology doubles the productivity of your coding hours but requires you to spend X hours to adopt the technology (reducing your available work hours to 2000-X). What is the maximum X that makes adopting the technology worthwhile in the first year?

O Suppose you are a hard-working software engineer that works 2000 hours a year, which you allocate between meetings (m), learning activities (1) and working effort (e) doing actual coding tasks (m + 1 + e = 2000). a. Write down your personal production function f(m, 1, e). Briefly describe how your output depends on the three activities. b. Does your production function exhibit increasing, decreasing or constant returns to scale (a all or some output levels)? Explain. c. Suppose a new technology doubles the productivity of your coding hours but requires you to spend X hours to adopt the technology (reducing your available work hours to 2000-X). What is the maximum X that makes adopting the technology worthwhile in the first year?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.1P

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