3 What will happen the returns to scale if production function moves from Q =120 L01K0.1 to Q = 240 L0-1K0.9?Select one:a. The value will change to decreasing returns to scaleb. Insufficient informationC. The value will be constant returns to scale.d. There will be no effect on the value for returns to scaleThe following question is based on the production functionQ=80L07K0.3 where the cost of labour is $6 and the cost of capital is $4. Thetotal cost of production is $120.Based on the production function given in the question, what are the returns toscale?Select one:a. Increasingb. Decreasingc. U- Shaped

The cobb Douglas Production function The production function in the long run is Y=A(L,K,N) Y= output…

Answered: What will happen the returns to scale…

Business

Economics

What will happen the returns to scale if production function moves from Q = 120 LO1K0.1 to Q= 240 L0.1K0.92 %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: expenditure approach T F 6. GDP is the value of all production during some specified period, usually…

A: GDP is the gross domestic product and is defined as the value of all goods and services produced in…

Q: Foreign Trade Zones Cajas, Inc, is considering opening a new warehouse to serve the Southwest…

A: Definition: A tariff is a tax on goods and services imported into a country. It is typically used to…

Q: Taco King produces tacos. The market for tacos is perfectly competitive, and the price is $2.00 a…

A: In competitive market there are many sellers and many buyers, each with no market power.

Q: 3. In a t-account show the bank balances for a $5000 deposit with a 10% reserve ratio. What is the…

A: Part 1 Deposit = 5,000 reserve ratio = 10% Part2 If reserved ratio is lowered to 2% Deposit is same…

Q: Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the…

A: A monopolistically competitive market has characteristics of both monopoly and perfect competition.…

Q: Is this rate an accurate reflection of economic growth? Why or why not? 8.

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only one question…

Q: Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility…

A: Total Cost: The term total cost refers to the cost that includes the total variable cost and the…

Q: 7 If the price of Chinese food decreases, there will be an (increase/decrease) in the…

A: Demand is the willingness to buy backed by the purchasing power. The law of demand states that…

Q: e following table gives the cost and demand data for a monopolist: tput Price $ Marginal Revenue $…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: in these large firms. Some economists observe that higher profit rates in large oligopolies stem…

A: Circular flow of income consists two agents household and firms and two markets one is resource…

Q: 1. Markets and competition In a perfectly competitive market, all producers sell goods or services.…

A: Perfect competition is a type of market structure.

Q: Copy and paste, or type, the following into cells A1:D5 of an Excel spreadsheet: Input data fixed…

A: The fixed cost is the cost which do not change with the change in the output level, that is, fixed…

Q: Page of 7 Figure 3-21 Price Pt P2 Quantity 19. A shortage will tend to occur at which price in…

A: Given following diagram demand and supply curve.

Q: A 255.

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…

Q: 13. In Avengers: Infinity War the character Thanos seeks to use the power of the infinity stones to…

Q: 3) Jack's Labor Demand Problem Jack hires craftswomen like Jane to help produce widgets. Jack acts…

A: Monopsony is defined as the market condition where there is a single buyer, known as the…

Q: Assume that an economy has multibank system. is a person deposits $5,000 into a bank that is…

A: Money will be multiplied it depend on the reserve requirement because afterwards whole amount will…

Q: Supply 4 Demand 40 80 120 160 Refer to the graph above. When the market is in equilibrium, consumer…

A: D. After referring to the graph given in the question we can see that the effective price ceiling…

Q: In some labor markets, the supply of labor is as follows (where W represents wages and L represents…

A: In a labor market, employers and job seekers can meet and exchange labor services in exchange for…

Q: 4. If a drought destroys tea crops causing an increase in the price of tea the (demand/quantity…

A: The only demand demand determinant that affects quantity demanded is the own price, while other…

Q: a) How much insurance do they need to provide for 20 years? (For a family of 3, the income need…

A: Insurance is a contractual agreement in which an individual or organization receives financial…

Q: Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To…

A: NET PRESENT VALUE Net present value (NPV) is a financial measure that calculates the difference…

Q: The table shows the total revenue of the six firms that make kevlar kayaks. If the U.S. firms in the…

A: The following information about the firms shows that the firms are operating in an oligopolistic…

Q: Question 2 Suppose that w = $5, r = $10 and your budget as the manager of a firm is C = $200 For all…

A: An isocost line is a graphical representation of all the possible combinations of two inputs that…

Q: Chapter 11 Production and Costs – Units of Total Marginal Product Total Variable ATC AVC MC Labor…

A: The law of diminishing marginal return that when more and more variables factors are added with…

Q: 3. Harriet can consume goods X and Y. The graph below represents one of her indifference curves…

A: Perfect compliments are those goods whose consumption are done in a fixed proportion like 2 sugars…

Q: In reality, the long run supply curve tends to be: Multiple Choice upward sloping downward sloping…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: An economy with no government is described by the following: • Marginal propensity to consumer = 0.8…

A: An inflationary output gap refers to the macroeconomic concept which measures the difference between…

Q: QUES 1. What was the symbolic significance of a successful terrorist attack on the World Trade…

A: The statistical significance and the economic consequence of a choice taken after data analysis and…

Q: Insurance Diagram Total Utility E U(W-L) B W-L P(W-L)+(1-p)W Expected If an insurance company…

A: * ANSWER :- By using given data the matching are given below

Q: Hint: label and the relevant points on the graph (like we did in class). Suppose now the "T-shirt"…

Q: 14. (continued) What happens to the labor productivity, which is the output per unit of labor, Y/L,…

Q: Classify each of the statements as an example of positive or normative analysis.. The sugar quota in…

A: Positive analysis refers to the objective and factual study of the world as it is, without making…

Q: c. How the following determinants causes the shift of the demand curve? Show using graph and…

A: The law of demand states that there is a negative relationship between price and quantity demanded…

Q: Question Ten firms compete in a market to sell product X. The total sales of all firms selling the…

A: The four-firm concentration ratio alludes to a measure utilized in economics to evaluate the degree…

Q: 1. If there is a population boom in California, the (demand/quantity demand) for surfboards will…

A: " Since you have posted a question with multiple sub-parts, we shall answer the first sub-parts . To…

Q: The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars)…

A: Demand basically refers to the quantity of a good or service that a consumer is willing and able to…

Q: 5. Suppose the market shown below. a. Suppose now that the government decides to introduce a price…

A: The laws enforced by the government in order to regulate the price are referred to as price controls…

Q: 5. If a new study shows that eating dark chocolate promotes a healthier lifestyle, the…

A: Change in demand occurs due to change in non price factors like expectation of future prices, change…

Q: 6. Sarah likes food, z and clothing, y and has the following utility function: U(x,y) = 2x!/2y}/2.…

Q: ques 5

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: The People's Republic of China has an estimated $101.54 trillion of capital with a depreciation rate…

A: The contribution of capital is 0.4 and it would affect the GDP accordingly. The rise in capital…

Q: During the Asian currency crisis the Thai baht fell in value significantly. Which of these was the…

A: Depreciation of a currency refers to the fall in the value of a currency in the international…

Q: 1. (Textbook problem 2, page 103) An economy has the production function Y=0.2(K+√N). In the current…

A: Production function : Y = 0.2 ( K + N0.5 ) K = 100 , N = 100

Q: Output and Prices for an Imaginary Economy for 2019 and 2020 Product Quantity in 2019 Price in 2019…

A: Nominal GDP = Current year quantity * Current year price. Real GDP = Current year quantity * Base…

Question

What will happen the returns to scale if production function moves from Q =
120 L01K0.1 to Q = 240 L0-1K0.9?
Select one:
a. The value will change to decreasing returns to scale
b. Insufficient information
C. The value will be constant returns to scale.
d. There will be no effect on the value for returns to scale
The following question is based on the production function
Q=80L07K0.3 where the cost of labour is $6 and the cost of capital is $4. The
total cost of production is $120.
Based on the production function given in the question, what are the returns to
scale?
Select one:
a. Increasing
b. Decreasing
c. U- Shaped

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

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

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.