QUESTION 1 For the production function Qs = K0.8L0.3 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 1.1).

QUESTION 1 For the production function Qs = K0.8L0.3 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 1.1).

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 27RQ: What is the difference between economies of scale, constant returns to scale, and diseconomies of...

See similar textbooks

Related questions

Q: Y = 2X{X} WHICH OF THE FOLLOWING ASSUMPTIONS APPLY TO THIS RELATIONSHIP. INCREASING RETURN TO SCALE…

A: Production function states the relation between output and inputs.

Q: Suppose the production function for T-shirts can be represented as q = L^0.25 K^0.75. When K =1 and…

A: Given q= L0.25K0.75 and K=1 and q=2.

Q: please computation for the following isoquant found in table 14 and show your computation for each…

A: Marginal rate of substitution, or, MRS is defined as the amount of commodity that the consumer is…

Q: 4. The production function for puffed rice is given by q = 100\KL, where q is the number of boxes…

A: The production function is given by q = 100KL Where,The quantity of boxes is represented by qCapital…

Q: 2-1 Consider the production function Y = X+4x2 – 0.2x3 a. Derive the exact marginal physical product…

A: Given: The production function: Y = X + 4x2 - 0.2x3 To Find: The exact marginal physical product…

Q: Suppose the relationship between your study time and your grade on a History midterm is given by the…

A: Marginal analysis is an assessment of the additional advantages of an operation relative to the…

Q: According to the law of diminishing returns, if a factory keeps adding more workers while keeping…

A: The law of diminishing returns is an economic concept that explains the relationship between inputs…

Q: A firm has a production function of Q(K,L) = K04L0.6 a) Explain the concept of returns to scale.…

A: The production function reflects the positive relationship between inputs (land and labor) and…

Q: 4. Characterize the returns to scale of the production function (a) (doing the same for production…

A: Solution for 4b: Production function: y = ln (1 + x1x2 + x1x3 + x2x3 )

Q: How the following are scaled using a table and to be supported with a graph. Present a discussion…

A: Production is the process of creating goods and services using various inputs such as labor,…

Q: Egidio Binaccio designed an ancestry app that allows people to connect with long lost Italian…

A: Costs refer to the expenses that are incurred in the process of production of goods or services.…

Q: The amount of fish caught per week on a trawler is a function of the crew size assigned to operate…

A: The marginal and average product of the worker or labor is useful in calculating the amount of fish…

Q: New Question Consider Exercise 3 again. Suppose the owner of the trawler can sell all the fish…

A: Cost is defined as the expenditure. It is expressed in terms of money value in the production…

Q: Describe three stages of the returns to the scale

A: According to the given question The return to scale refers to the response of the total output of…

Q: A fırm has the production function: q = 20L04K0.8 With L=20 and K=24, what is the MRTS? Provide your…

A: Given: Production Function : q=20L0.4K0.8 L=20 & K=24

Q: Determine the returns to scale of this production function: F (x1, x2) = [xỉ + x]\/2 A. Constant…

A: If change in inputs changes output by an equal proportion, production function has constant returns…

Q: Technology B uses 4 workers and 2 tonnes of coal to produce 100 meters of cloth. The worker's wages…

A: As the cost of production is $50, and the technology uses labor and coal. Labor is priced at $10 and…

Q: It costs a company $58 to produce 6 units of a product and $78 to produce 10 units. Assuming that…

Q: A firm has the following production function: Q = 9L2/3K1/3 Where Q is output, L is labor and K is…

A: Returns to scale basically the returns obtained in a long period of time when the production scales…

Q: Which of the following production functions exhibits constant returns to scale (refer to activities…

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

Q: etermine the level of homogeneity and returns to scale for each of the following production…

A: Production function means. A production function is a mathematical representation of the…

Q: b) Do the following functions exhibit constant, increasing or decreasing returns to scale. Ensure to…

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

Q: Isoquant curves Gym requires exactly 3 bottles of water per athlete to maximise performance…

A: Introduction Isoquant curve : Isoquant curve represents all the inputs combinations of two…

Q: SUPPOSE A FRIM PRODUCE OUTPUT USING THE PRODUCTION FUNCTION Q= 5KL .WAGE RATE FOR HIRING LABOR IS…

A: Given Production function Q = 5KL Wage rate w = 200 /hour Rent for capital = 100/ hour We have to…

Q: Determine the returns to scale for the following production functions. a) ? = K + 7L b) ? = KL3

A: Return to scale:- Returns to scale is a phrase that describes how proportionally fluctuations in…

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: The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000.…

A: The breakeven point is a financial concept that refers to the level of sales or production at which…

Q: For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale…

A: Returns to scale exhibits what happen to scale of production in long run when its factor of…

Q: QUESTION 1 For the production function Qs = K0.6L0.7 find the returns to scale, recall that a…

A: Return to scale: It tells us that if we increase capital and labor by a factor of 't', then how much…

Q: Use the line drawing tool to plot the functional relation. listed below on a scale diagram (with X…

A: The question is on the concept of linear equations and how to graph them on a coordinate plane. A…

Q: (1) q=35L + 40K (2) q=L.5K.5 a) For the production functions of (1) and (2) create the isoquants…

A: Production function defines the relationship between physical input and physical output of a firm .…

Q: E Gmax problem where t=rpe, py,lIl> 70 x7,0 y7,0 Use lograngian ethod

A: Utility Function : u(x, y) = x2 y Budget Constraint => Pxx +PYy = I Now , Lagrange Method of…

Q: For the production function Qs = K0.4L0.1 find the returns to scale, recall that a doubling of…

A: Return to scale: It tells us that if we increase capital and labor by a factor of 't', then how much…

Q: Does this production function q = 9K0.8L0.1 exhibits [increasing return to scale, constant return…

A: Given: q = 9K0.8L0.1

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define returns to scale

VIEW

Step 2: Calculate returns to scale

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 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

For the production function Qs = K0.4L0.1 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
Number
handwrite it out and include graph please
Does this production function q = 9K0.8L0.1 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
Cost curves Egidio Binaccio designed an ancestry app that allows people to connect with long lost Italian relatives. Egidio notices the following relationship between the number of hours he schedules and the number of downloads (sales) he gets. Below is a production function, for Egidios current company set up. NUMBER of LABOUR DOWNLOADS HOURS B) 10 C) 20 30 40 50 60 70 80 90 100 110 120 130 140 6.50 11.00 14.50 17.50 20.50 23.75 27.50 32.00 37.50 44.50 53.50 65.00 79.50 97.50 TVC TC MC AVC Suppose the firm can hire all the labour it would ever want at the going wage of $8 per labour-hour. The firm's total fixed costs are $64 per day. A) ATC Fill in the table showing total variable cost (TVC), total cost (TC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). [Remember: Marginal cost should be entered midway between rows of output.] On a graph with DOWNLOADS (per day) on the horizontal axis, draw the three "per-unit" cost curves, AVC, ATC, and MC. [Note…
a) SUPPOSE A FRIM PRODUCE OUTPUT USING THE PRODUCTION FUNCTION Q= 5KL .WAGE RATE FOR HIRING LABOR IS 200 AN HOUR AND COST OF USING CAPITAL IS 100 PER HOUR. FIND OUT THE OPTIMAL QUANTITIES OF LABOR(L*) AND CAPITAL(K*) TO PRODUCE 1000 UNITS OF OUTPUT? ALSO SHOW THE RESULT GRAPHICALLY AND INTERPRET .
For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale b.Decreasing Returns to Scale c.Increasing Returns to Scale d.Zero Return to Scale
3 1 Y = 2X} X} WHICH OF THE FOLLOWING ASSUMPTIONS APPLY TO THIS RELATIONSHIP. INCREASING RETURN TO SCALE DECREASING INCOME TO THE SCALE FIXED RETURN TO THE SCALE
Suppose the relationship between your study time and your grade on a History midterm is given by the following table:If you study for Your grade will be4 hours 805 hours 906 hours 93What is the "marginal grade improvement (MGI)" of the 5th hour of studying? What is the "marginal grade improvement (MGI)" of the 6th hour of studying? Why might the MGI be diminishing?
Solve all questions compulsory..
According to the law of diminishing returns, if a factory keeps adding more workers while keeping the amount of machinery constant, eventually: 0000 Total output will start to decrease. Output per worker will start to increase. The additional output generated by adding another worker will start to decrease. The factory will become more efficient.
Plz answer correctly asap