Question 70.25The production function f(L, K) =50k L0.75 exhibitsincreasing returns to scale.decreasing returns to scale.increasing, then diminishing returns to scale.constant returns to scale.negative returns to scale.

In economics, returns to scale measures the proportionality of change in output when the inputs are…

Answered: The production function f(L, K)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the above diagram. Diseconomies of scale?
Production Point Capital (K) Labor (L) Output (Q) A 1 1 2 B 2 2 C 1 3 D 2 4 E 1 5 F 2 6 G 1 7 H 2 8 X The profuction function is given as: Q=αK + βL B andf E lie on the same isoquant, while D and G are on a higher isoquant. 3. a. This production exhibits what kind of returns to scale? Explain how you arrived at this conclusion. b. Will any combination of α and β lead to this production exhibiting increasing returns to scale? c. True or false. In general, production can display diminishing returns in all variables but still display increasing returns to scale. Explain.
The production function for soy beans is q = K 0.25 L 0.45. Dose this production function have constant, increasing or decreasing return to scale? A. may be increasing or decreasing B. Constant return to scale C. Decreasing return to scale D. Increasing return to scale
If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits Group of answer choices diminishing profitability. increasing returns to scale. increasing marginal product. decreasing marginal product.
A short-run production function assumes that the level of output is fixed. at least one input is a fixed input. all inputs are fixed inputs. all inputs can be varied.
If a firm has the production function q = f(L, K) = L + 2K, then its technology exhibits: constant returns to scale increasing returns to scale None of the above. decreasing returns to scale increasing marginal product
The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
The downward-sloping segment of the long-run average cost curve corresponds to * diseconomies of scale. both economies and diseconomies of scale. economies of scale the decrease in average variable costs.
Consider a short run production function q = cL+K where the value for c=3, using L units of labour and K units of capital. a) Compute the marginal product of labour. b) Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
Lesson 7- Production Question 8
A firm’s short-run production function is in the form of q = aLK +(bL^2)K −(cL^3)K , wherea, b, c > 0 are parameters. K is a constant. (a) Derive the marginal product of labor.(b) Find the level of L, expressed in terms of the parameters, at which the law ofdiminishing marginal product kicks in.
Which of the following production functions exhibit decreasing returns to scale? Select all that apply. O Q = 2K0.4 L0.6 O Q=0.5 K0.3 0.7 OQ=0.7 K0.4 L0.3 = K0.25 L 0.5 Q = 0.3 K0.5 L0.7 OQ=0.2 K0.3 L0.8

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The production function f(L, K) =50k0.25 L0.75 exhibits increasing returns to scale. decreasing returns to scale. increasing, then diminishing returns to scale. constant returns to scale. negative returns to scale.