Q) The production function Q = L1/2K exhibits: Group of answer choices a) Increasing returns to scale but no diminishing marginal products. b) Increasing returns to scale and diminishing marginal products of both L and K. c) Decreasing returns to scale. d) Increasing returns to scale and diminishing marginal product of L only.

Q) The production function Q = L1/2K exhibits: Group of answer choices a) Increasing returns to scale but no diminishing marginal products. b) Increasing returns to scale and diminishing marginal products of both L and K. c) Decreasing returns to scale. d) Increasing returns to scale and diminishing marginal product of L only.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

See similar textbooks

Related questions

Q: A firm has the production function q = f(L, K) = L0.5+ K0.5 This firm has: O increasing returns to…

A: The production function exhibits increasing returns to scale if the increase in input by 'm' times…

Q: Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a)…

A: TPL = 180L2 - 3L3 APL = TP/L = 180L - 3L2 MPL = CHANGE IN TP/CHANGE IN L = 360L - 9L2

Q: Suppose a firm uses capital K and labor L to produce output Q with the following production…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: Suppose a firm's production function can be specified as Q = 10KL.This firm's cost function…

A: This can be described as a concept that shows when an individual, firm, or any entity uses an…

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of transformation of inputs into output by using factors of production .…

Q: 0.5 Consider the following production function: ƒ(2₁, 22) = 21 +22 a) What kind of returns to scale…

A: Production function shows the relationship between the input and the output. Production function…

Q: Production function of a company is given by f(x;y)= root of x + root of y where x is labor and y is…

A: Given: f(x;y)= x+yCost of labor = w=2 currency unitsCost of capital =r= 1 currency unit

Q: The engineers at Morris Industries obtained the following estimate of the firm’s production function…

A: Firm’s production function is shown below.

Q: Consider the following production functions • F(L,K) = LK^3 For each for these production…

Q: (a) Suppose we have the following production function: Q = K²/³12/3. Does the technology have…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: eturns to scale

A: Option (A). Q = 5L2 + 4K3/2L When both inputs are doubled, new production function is Q* = 5 x (2L)2…

Q: Which of the following production functions represent increasing returns to scale? 1. f(K, L) = 2K+…

Q: Production is described by the function f(K, L) = AL0.3K 0.3, A > 0.a. Interpret the exponents of…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Consider the following production function: Y = F(K, L) = A(2K+ 3L) Does this production function…

A: A production function shows constant returns to scale when doubling all the inputs results in a…

Q: A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does…

Q: QUESTION 12: Let the production function be as follows Q = K2/3L¹/3 Find the cost-minimizing level…

A: Cost minimization problem of the producer: For the given output level of the firm and per unit cost…

Q: Consider the following production functions • F(L,K) = LK^3 For each for these production…

A: In this case, we have to discuss the production function. Production function is actually showing…

Q: A firm's production function is given by y(K, L) = 2√(KL) or 2(KL).5 (2 times the square root of the…

A: The Marginal Product of Labor (MPL) represents the change in output resulting from employing an…

Q: In a production process, an excessive amount of the variable input relative to the fixed input is…

A: Short-run production: Under the short-run production, there are both factor inputs i.e. Fixed and…

Q: Q2. Determine the returns to scale of the following production function: Hand written plzz Y = 5K0.5…

A: Returns to scale: - returns to scale show the change in output due to the change in scale of…

Q: Consider the production function q = ((K^α)+(L^α))^β. For this function to have diminishing marginal…

A: Economics refers to the study of scarcity and its implications for the use of resources, production…

Q: 12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1,…

A: Answer - Need to find- Which production function shows decreasing return scale 1. Answer - f(x) =…

Q: Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a)…

A: Production Function studies the fundamental difference between physical input and output. It is…

Q: en the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a)…

A: The production function shows the relationship between the output and inputs. q = 10KLThe output is…

Q: Which of the following production function would exhibit increasing returns to scale? f(K, L) = (K +…

A: Production function shows the relationship between the inputs used and output produced. Constant…

Q: Which of the following production functions exhibits constant return to scale?

A: The production function exhibits constant returns to scale when there is a proportionate change in…

Q: Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a)…

A: Returns to scale refers to how production of a good changes when units of both inputs change.

Q: e) Do the following production functions exhibit increasing, constant, or decreasing returns to…

A: The returns to scale occurs over the long run when all inputs are used in fixed proportion. The…

Q: Identify the returns to scale in the functions below. Production Function a. q 3L + 2K Returns to…

A: The production function shows the relationship with the input used and output produced.There is…

Q: An electronics plant’s production function is Q = 5LK, where Q is its output rate, L is the amount…

Question

The production function

Q = L^1/2K exhibits:

Group of answer choices

a) Increasing returns to scale but no diminishing marginal products.

b) Increasing returns to scale and diminishing marginal products of both L and K.

c) Decreasing returns to scale.

d) Increasing returns to scale and diminishing marginal product of L only.

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminate
Which of the following production functions exhibits constant return to scale? A) q=KL B) q=KL0.5 C) q=K+L D) q=log(KL)
Given the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a) Mathematically find the minimum cost combination of capital and labour to produce a given level of output.b) Does the production function in part (a) show increasing returns to scale, decreasing returns to scale, or constant returns to scale? Explain. (c) Using isoquants and isocosts, graphically illustrate the effect of an increase in the wage rate, assuming the firm is producing at the same level of output.
12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1, 12}. 1/4 (b) f(z) = xỉ + x}/2 1/4 1/2 (c) f(x) = r1 + xj"x (d) f(x) = VE +a3.
A production function is given by the following: F(L, K) = 5L2 + 4KiL %3D The production function exhibits: O Increasing returns to scale O Decreasing returns to scale O Constant returns to scale O Diminishing marginal product of labor
which of the following functions satisfy the following properties: i) Increasing in both inputs. ii) Diminishing marginal products. iii) Constant returns to scale. iii) Complementarity between capital and labor.
Suppose a firm uses capital K and labor L to produce output Q with the following production function: 1 Q=4KL + = 1² 3 (a) Find the marginal product of capital and the marginal product of labor. (b) Find the average production of capital and the average production of labor. (c) Does this production function have increasing, constant, or decreasing returns to scale? Explain. (d) Find the marginal rate of technical substitution (RTS). (e) Use your result in (d) to find the elasticity of substitution. (f) Find the contingent demand functions for capital and labor if w is the price of labor input and v is the price of capital input.
Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
Which of the following production function would exhibit increasing returns to scale? f(K, L) = (K+ L)1/2 f(K, L) = K + L f(K, L) = K1/4+ [1/4 Of(K, L) = KIL None of the above
(a) Suppose we have the following production function: Q=K²/³L2/³ Does the technology have constant returns to scale (CRS)? If not, what? Show your work and explain what it means.< (b) What is the firm's cost minimi on problem in the long-run? Explain and illustrate in a figure using isocost and isoquants how termine optimal inputs K and L. ← (c) Now, consider the short-run where K is fixed at 8 (so that K²/³ = 4). Let r = $20 and w = $10. Show then discuss how short-run average costs change as Qrises. You can use math or a table/figure to do this. (d) Suppose P = $15. Show that optimal Q = 64 in the short-run. You can use math or a spreadsheet. Show details. < (e) Now suppose P = $5. Should the firm shut-down and set Q=0? Explain. <
Which of the following production functions represent increasing returns to scale? 1. f(K, L) = 2K + 3L II. f(K, L) =[K¹/² + [¹/2]³ III. f(K, L) = min{4K, L} IV. f(K, L) = 5KL-K²/2 - 1²/2 (1) only (II) only (II) and (IV) All of them (1) and (III)
Q2. Determine the returns to scale of the following production function: Hand written plzz Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminate