Which of the following production functions represent increasing returns to scale?1. f(K, L) = 2K + 3LII. f(K, L) =[K¹/² + [¹/2]³III. f(K, L) = min{4K, L}IV. f(K, L) = 5KL-K²/2 - 1²/2(1) only(II) only(II) and (IV)All of them(1) and (III)

Answered: Image /qna-images/answer/5361af59-02ff-4a29-9ada-257302b0bb77.jpg

Which of the following production functions represent increasing returns to scale? 1. f(K, L) = 2K+ 3L II. f(K, L) =[K¹/2 + [¹/2]³ III. f(K, L) = min{4K, L} IV. f(K, L) = 5KL - K²/2 - L²/2 (1) only (II) only (II) and (IV) All of them (I) and (III)

Which of the following production functions represent increasing returns to scale? 1. f(K, L) = 2K+ 3L II. f(K, L) =[K¹/2 + [¹/2]³ III. f(K, L) = min{4K, L} IV. f(K, L) = 5KL - K²/2 - L²/2 (1) only (II) only (II) and (IV) All of them (I) and (III)

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: Assume a Cobb-Douglas production function of the form: q = 10L0.24 K0.51 What type of returns to…

A: Return to scale define the level of production in the firm , so here we calculate the return to…

Q: For the production function Q = 4LK, returns to scale: is decreasing O Can be increasing,…

A: Returns to scale decribes how output changes when inputs change by a certain percentage.

Q: Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio…

A: At optimum where production is maximised, marginal rate of technical substitution equals price ratio…

Q: H8. Which of the following production functions exhibit(s) constant returns to scale?I. Q = Min…

A: There are CRS if the doubling the all inputs result in the double of output.

Q: Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0. For what range of values of…

A: The production function exhibits increasing returns to scale when the increase in input by 'm' times…

Q: Suppose a firm's production function can be specified as Q = 10KL.This firm's cost function…

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

Q: Suppose that the production function is q=f(L, K) = La + Kª, where a>0. For what range of values of…

A: The production function exhibits increasing returns to scale when the increase in input by 'm' times…

Q: Match the multi-variable function on the left with the scale property. Q(K.L) =4K1.5L1.5 A…

A: "Returns to scale check how output changes when all inputs in the production process change by same…

Q: 4) Does these production functions exhibit decreasing, constant, or in- creasing returns to scale?…

A: Due to its ability to clarify and measure the link between labor and capital, the two components of…

Q: (4) w = 3. firm's production function is F(K, L) = 2√/K + L. Factor prices are r = 2 and (a) Find an…

A: The marginal product of labor represents the increase in output as a result of an increase in labor…

Q: For the production function Q = L² +0.5K², returns to scale: O is constant O Can be increasing,…

A: Return to Scale:Return to scale refers to the effect on output or production when all inputs are…

Q: > The production function for gadgets is: Q = Q(L, G) = L½ + G½ ne price of L is w = $2. The price…

A: A production function has Diminishing returns to scale when change the inputs changes the output by…

Q: For a production function q= f(K, L) = K^1/3 L^1/3 and factor prices w=8 and r=1, answer the…

A: Returns to scale refer to the change in output that occurs when all inputs (capital, K, and labor,…

Q: 1. Which of the following production functions is an increasing, decreasing, or constant return to…

A: Return to scale: It tells us that of we increase capital and labour with a factor of ‘t’ then how…

Q: A12. Which of the following production functions does not feature constant returns to scale? a) Y₁ =…

A: A production function exhibits constant returns to scale if doubling the inputs results in exactly…

Q: If a firm's production function is given by Q = K0.3L0.3 then it exhibits а. Decreasing returns to…

A: Returns to scale: - returns to scale, show the change in output due to the change in scale of…

Q: A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does…

Q: Assume a Cobb-Douglas production function of the form: q=10L0.66 K0.88 What type of returns to scale…

A: Return to scale in a production function signifies the rate of change in production due to a change…

Q: Which of the following production functions does not display constant returns to scale? a. Q =…

A: The return to scale is a concept that describes the relationship between the scale of production or…

Q: Under what conditions do the following production functions exhibit decreasing, constant, or…

A: When an increase in inputs results in a proportional increase in output, there occurs constant…

Q: or the production function Qs = K0.5L0.7 find the returns to scale, recall that a doubling of inputs…

A: Returns to scale mean when inputs are raised by a certain proportion, how much output rises. The…

Q: (1) f(L, K) = ALªK!-a (2) f(L, K) = (min {iL, jK})²

A: Returns to scale refers to how much output changes given a proportional change in all inputs- where…

Q: The production function of a firm is f(x, y) = min{x, y}. This is a constant returns to scale…

A: The constant return to scale states that increasing all inputs (i.e., K and L) by a certain…

Q: (d) What do we mean by an exit price? What is the exit price if r = $100 and w = $2000? Explain. (e)…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

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: For the production function Q = 16L + 0.2K, returns to scale: O is decreasing can be increasing,…

A: Production function states the relationship between the input and output of goods in production by a…

Q: Q) The production function Q = L1/2K exhibits: Group of answer choices a) Increasing…

A: Given Production function Q= L1/2K .......... (1) To know the return to scale, we increase…

Q: Do the following production functions have increasing, decreasing, or constant returns to scale?…

Q: Consider several production functions below and indicate whether they exhibit constant, increasing…

A: The markets are the place where the buyers of various goods and services tend to interact and meet…

Question

Which of the following production functions represent increasing returns to scale?
1. f(K, L) = 2K + 3L
II. f(K, L) =[K¹/² + [¹/2]³
III. f(K, L) = min{4K, L}
IV. f(K, L) = 5KL-K²/2 - 1²/2
(1) only
(II) only
(II) and (IV)
All of them
(1) and (III)

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 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

Please indicate which multiple choice awnser is correct for question 1.1)1.2)1.3)Please indicate it correctly as I have had this awnsered with different letters to the awnser I was told 1.1 - A firm trebles its inputs and discovers that its output rises by a factor of four. This is an example of;Select one or more:a. constant returns to scaleb. diminishing returns to a variable factor c. increasing returns to scaled. economies of scale1.2 - Diseconomies of scale are present when.... Select one or more:a. marginalcostsriseb. long run average costs rise as output rises c. totalcostsfallasoutputrisesd. total costs rise as output rises 1.3 - If the demand for a firm’s product is price inelastic, this implies that Select one or more: a. price changes have no impact on quantity demandedb. a fall in price of 3% will lead to a decline in quantity demanded of more than 3%c. a rise in price will raise total expenditure on the goodd. a 5% rise in price will result in a fall in quantity…
Which of the following production functions exhibits increasing returns to scale in the factors of production K and L? a. y = ĀK0.3 L0.75 b. y = Kª(ĀL)-e,0 < a < 1 c. y = ĀKO.3L0.3 d. y = ĀK/4 + L³/4
6. Which one of the following production functions represents an increasing returns to scale technology, where e is labour and k is capital? a) F(£,k) = e1/2 + k1/2. b) G(2,k) = {2/3k^/2. c) H(e,k) = min{{, 2k} d) I(e, k) = 3l + 2k.
Show that the two-input Cobb-Douglas production function (attached) has decreasing return in scale (DRS), constant return of scale (CRS) or increasing return of scale (ITS) depending on if alpha1 + alpha2 is smaller than, equal, or larger than 1.
A firm’s production function is - y = f(X1, X2)= X11/2 + X1X2 , Where X1≥0, X2≥0 1. Find its returns to scale when X1=1, and X2=1