Suppose a firm has a production function with two inputs, capital (K) and labor (L). The production function takes the form: Q = L2K2. Further, let the wage be given by w, the rental rate of capital be given by r, and suppose that the firm wishes to produce Q0 units of output.   Determine the elasticity of substitution for this production function. Explain your answer. Determine the returns to scale for the production function. Solve for the long-run optimal input demand functions for capital and labor as a function of

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A: The production function is the mathematical relationship between different bundles of inputs and…

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A: Given  Production function: q=KLα where α>0             ............ (1)

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

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A: The economy has the ability to produce at which points.

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A: answer to the question is as follows :

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A: please find the answer below.

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A: “Since you have posted multiple questions, we will provide the solution only to the first question…

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A: here we  can find out the given things as follow

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A: We have cobb double production function with alpha and beta as parameters.

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

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Q: *Find the elasticity of scale and the elasticity of substitution for the CES production function…

A: Let the production function be: Q = x1ρ+x2ρ1ρ

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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Q: Consider a firm with production function F(K, L)=3L+8K. Assume that capital is fixed at K=12. Assume…

A: The answer to the questions is as given below :

Q: a) Given the production function y = (l'+K")P, what is the technical rate of substitution, the…

A: Answer is given below

Q: A firm can manufacture a product according to the production function Q = F(K, L) = K3/4 L1/4 a.…

A: