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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Similar questions

Refer to the above diagram. Diseconomies of 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
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.
The minimum efficient scale is the smallest quantity of output at which the average fixed cost curve reaches its lowest level. economies of scale begin. the long-run average cost curve reaches its lowest level. the average total cost curve reaches its lowest level. diminishing returns begin.

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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.