Industry Food and beverages Textiles Furniture Petroleum Stone, clay, etc. Primary metals Stone, clay, etc. Petroleum Textiles Primary metals O Textiles Capital Elasticity (B₁) 0.555 Which of the following industries appear to exhibit decreasing returns to scale? Check all that apply. Food and beverages 0.121 0.205 0.308 0.632 0.371 Source: John R. Moroney, "Cobb-Douglas Production Functions and Returns to Scale in U.S. Manufacturing Industry," Western Economic Journal 6, no. 1 (December 1967): Table 1, p. 46. Petroleum Production Worker Stone, clay, etc. Elasticity (B₂) 0.439 Which industry comes closest to exhibiting constant returns to scale? 0.549 0.802 0.546 0.032 0.077 Nonproduction Worker Elasticity (B3) 0.076 0.335 0.103 0.093 0.366 0.509 Sum of Elasticities (B1 + B2+ B3) 1.07 In which industry will a given percentage increase in capital result in the largest percentage increase in output? 1.004 1.109 0.947 1.029 0.958

Industry Food and beverages Textiles Furniture Petroleum Stone, clay, etc. Primary metals Stone, clay, etc. Petroleum Textiles Primary metals O Textiles Capital Elasticity (B₁) 0.555 Which of the following industries appear to exhibit decreasing returns to scale? Check all that apply. Food and beverages 0.121 0.205 0.308 0.632 0.371 Source: John R. Moroney, "Cobb-Douglas Production Functions and Returns to Scale in U.S. Manufacturing Industry," Western Economic Journal 6, no. 1 (December 1967): Table 1, p. 46. Petroleum Production Worker Stone, clay, etc. Elasticity (B₂) 0.439 Which industry comes closest to exhibiting constant returns to scale? 0.549 0.802 0.546 0.032 0.077 Nonproduction Worker Elasticity (B3) 0.076 0.335 0.103 0.093 0.366 0.509 Sum of Elasticities (B1 + B2+ B3) 1.07 In which industry will a given percentage increase in capital result in the largest percentage increase in output? 1.004 1.109 0.947 1.029 0.958

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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