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q = VKL 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 producet of labour is:

q = VKL 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 producet of labour is:

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For Questions 20 to 23, consider the following production function: q = VKL 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: b) VK 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 labour is: (Hint: Consider the Euler theorem.) a) 1/2 b) -1/2 c) 1/4 d) 1/3
Transcribed Image Text:For Questions 20 to 23, consider the following production function: q = VKL 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: b) VK 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 labour is: (Hint: Consider the Euler theorem.) a) 1/2 b) -1/2 c) 1/4 d) 1/3
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