For Questions 20 to 23, consider the following production function: q = K2/3[1/3 where q is the produced quantity, K is the level of capital used in production and L is the level of labour used in production. 20. Given its functional form, the production technology displays: a) constant returns to scale b) increasing returns to scale c) decreasing returns to scale 21. The marginal product of labour is: a) K²/3L-2/3 b) K-1/3L/3 d) 2 K-1/3 L1/3 22. The marginal product of labour is: a) positive and decreasing in labour. b) negative and decreasing in labour. c) positive and increasing in labour. d) negative and increasing in labour. 23. Assume that all factors of production get paid their marginal products. In this case, the share of output earned by capital is: (Hint: Consider the Euler theorem.) a) 2/3 b) 2 c) 3 d) 1/3
For Questions 20 to 23, consider the following production function: q = K2/3[1/3 where q is the produced quantity, K is the level of capital used in production and L is the level of labour used in production. 20. Given its functional form, the production technology displays: a) constant returns to scale b) increasing returns to scale c) decreasing returns to scale 21. The marginal product of labour is: a) K²/3L-2/3 b) K-1/3L/3 d) 2 K-1/3 L1/3 22. The marginal product of labour is: a) positive and decreasing in labour. b) negative and decreasing in labour. c) positive and increasing in labour. d) negative and increasing in labour. 23. Assume that all factors of production get paid their marginal products. In this case, the share of output earned by capital is: (Hint: Consider the Euler theorem.) a) 2/3 b) 2 c) 3 d) 1/3
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
please answer the all questions 20,21,22,23!!!!!!!!
Transcribed Image Text:For Questions 20 to 23, consider the following production function:
q = K2/3[1/3
where q is the produced quantity, K is the level of capital used in production and L is the level
of labour used in production.
20. Given its functional form, the production technology displays:
a) constant returns to scale
b) increasing returns to scale
c) decreasing returns to scale
21. The marginal product of labour is:
a) K²/3L-2/3
b) K-1/3L/3
d) 2 K-1/3 L1/3
22. The marginal product of labour is:
a) positive and decreasing in labour. b) negative and decreasing in labour.
c) positive and increasing in labour.
d) negative and increasing in labour.
23. Assume that all factors of production get paid their marginal products. In this case, the
share of output earned by capital is: (Hint: Consider the Euler theorem.)
a) 2/3
b) 2
c) 3
d) 1/3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education