мса 32If production conditions are such that a 10% increase in both the labour and capital inputs leads to a 5% increase in output, the production function is said to exhibit:Aunexhausted economies of scaleincreasing returns to scaleC increased capital intensitydecreasing returns to scaleEI do not want to answer this question.constant returns to scale

Production function shows the combinations of inputs that can be used to produce the output.

мса 32 If production conditions are such that a 10% increase in both the labour and capital inputs leads to a 5% increase in output, the production function is A unexhausted economies of scale increasing returns to scale C increased capital intensity decreasing returns to scale E I do not want to answer this question. constant returns to scale

мса 32 If production conditions are such that a 10% increase in both the labour and capital inputs leads to a 5% increase in output, the production function is A unexhausted economies of scale increasing returns to scale C increased capital intensity decreasing returns to scale E I do not want to answer this question. constant returns to scale

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that a production function for labor (L) and capital (K) is given by: q(L,K) = L K0.2 . Does this production function exhibit constant, increasing, or decreasing returns to scale? A. Increasing returns to scale B. Constant returns to scale C. Decreasing returns to scale
1. Given the production function: q = 2KL, (a) Fill in the table below which has information on the short-run production function, the marginal product of labor (MPL), and the average product of labor (APL) if capital is held fixed at 3 units in the short-run. Labor Quantity of Output (MPL) (APL) 0 1 4 9 16 25 (b) Plot the short-run production function. (c) Plot the marginal and average products of labor on a new graph. (d) Does the law of diminishing marginal returns apply? If so, at what level of labor do diminishing marginal returns set in? (e) What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL)? (f) If the amount of capital increased to 6 units, what would happen to your graphs in part C)?
Question 5 Which of the following production functions exhibit increasing return to scale? Decreasing return to scale? Constant return to scale? Note: X1 and X2 are inputs a. Y = AXq.5X3 b. Y = 0.5X, + 10 c. Y = AX,X2 d. Y = 3X1 + 7X2 e. Y = (-AX? – BX; + CX,X2)0.5
Consider the followng production function: 1 2 9 = x?x where x, and x, measure the employed quantities of input #1 and input #2, respectively. (a) Solve for and graph this firm's isoquant at q isoquant. 10. Please label three points along this (b) Does this production function exhibit increasing, decreasing, or constant returns to scale? Explain. Please corroborate your answer using a set of isoquants when the quantity of both imputs gets doubled. Note: Be sure to plot x2 along the y-axis.
The production function q = 9K0.8L0.1 exhibits: a. increasing retruns to scale b. constant returns to scale c. decreasing returns to scale d. none of the above The production function q = K1.2 + 3L1.2 exhibits a. increasing retruns to scale b. constant returns to scale c. decreasing returns to scale d. none of the above
Consider the following constant returns to scale production function Y=f(K,AN). Doubling output is possible if one: a. None of the above. O b. Doubles simultaneously K, A and N. O C. Doubles simultaneously K and A. d. Doubles simultaneously A and N.
In each blank type increasing, decreasing or constant to describe the returns to scale of the given production function. 1 a. The production function Q 3 = 3L°K exhibits returns to scale. b. The production function Q = LK? exhibits c. The production function Q = 3L +K exhibits returns to scale. %3D returns to scale.
Identify the returns to scale in the functions below. Production Function a. q = 3L + 2K Returns to Scale constant increasing decreasing
Does this production function q = 9K0.8L0.1 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
For its current level of production, a firm is attempting to minimize its costs. The firm has determined that the marginal product of labor is 10, the marginal product of capital is 20 and the cost per unit of labor is $5, whereas the cost per unit of capital is $10. To minimize cost for the given output the firm should Increase the amount of capital and decrease the amount of labor Leave the amount of capital and labor as they are Decrease the amount of capital and increase the amount of labor
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1. Suppose the production function is Q = 8L + 15K where Q is the quantity of output, L is the quantity of labor used in production, and K is the quantity of capital used in production. What can be said about this production function? It has Decreasing Returns to Scale It has Constant Returns to Scale It has Increasing Returns to Scale There isn’t enough information to determine the Returns to Scale for this production function 2. You’re dreaming of what to do during a nice summer day. You could mow the lawn which you would pay someone $15 to do for you. You could go for a walk which you value at $11. You could also take a nap and ignore everyone and everything else which you would pay $29 to do. If you to take a nap, what is your opportunity cost? Group of answer choices $29 $26 $15 $11