>>Question 3Which of the following production technology exhibits constant returns to scale?I. f(K, L)=K0.25 L0.75II. f(K, L) = K0.75 0.75III. f(K, L) = K0.25 0.25Only (i)Only (ii)Only (iii)All of them.Question 4Which of the following production technology exhibits increasing returns to scale?I. f(K, L) = K0.25 L0.75II. f(K, L) = K0.75 0.75III. f(K, L) = K0.25 0.25Only (i)Only (ii)Only (iii)O All of them.

The constant return to scale states that increasing capital (K) and labor (L) by X% will increase…

Answered: Which of the following production…

Which of the following production technology exhibits constant returns to scale? I. f(K, L) = K0.25 0.75 II. f(K, L) = K0.75 0.75 III. f(K, L) = K0.25 0.25

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: the returns to scale for the following production functions: q = K.34L.34 q = KLM

A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 question for you. If…

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: Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If…

A: For the constant return to scale production technology, the average cost of production remains the…

Q: A firm has the production function q = f(L, K) = min{L2, K2}. This firm has: increasing returns to…

A: The question is what magnitude that production function returns to the firm under consideration. The…

Q: The concept of ‘constant returns to scale’ implies that, if the state of technology (A) remains…

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

Q: Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a)…

A: TPL = 180L2 - 3L3 APL = TP/L = 180L - 3L2 MPL = CHANGE IN TP/CHANGE IN L = 360L - 9L2

Q: short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply,…

A: The law of deminishing marginal returns is one of the key standards of financial matters and is…

Q: A hospital provides emergency-room medical care for local residents. Suppose the hospital currently…

A: Economies of scale refers to the reduction in the average total cost of production which is secured…

Q: A hospital provides emergency-room medical care for local residents. Suppose the hospital currently…

A: Given: Suppose the hospital provides care for Patients: 15000 Total Cost = $60,000,000 If…

Q: Which of the following production functions demonstrates constant returns to scale? I. Q=5L+2K II.…

A: Constant returns to scale condition.Q(λK,λL)=λQ(K,L)

Q: True or False. Please explain The production function f(x1,x2,x3) = (min{0.5x1;0.75x2 })0.5 ·x30.5…

Q: Which of the following production functions exhibit(s) constant returns to scale? I. Q= KL K+L II. Q…

A: Given: There are three production functions: 1. Q=KLK+L2. Q=2K+L3. Q=K0.8L0.2

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: You are given the following long-run cost function: TC = 150Q - 20Q2 + 1.8Q3 What level of Q will…

A: Economies of scale is where slope of long run average cost <0, while disceconomies of scale comes…

Q: (a) Suppose we have the following production function: Q = min [10 K, L]. Confirm the technology…

A: Returns to scale refers to the proportionate change in output scale when the input levels are…

Q: 1. Assume that a firm has the following production function: q = L0.5K0.6 a. Calculate output when L…

A: production function :q=L.5×K.6 output L=64 K=32

Q: If a firm's average total costs decrease as it increases its scale of production, the firm is…

A: Economies of scale is when the increasing production decreases the average total cost. Diseconomies…

Q: Consider the following Cobb-Douglas production function, where a = ß=0.5: Q=K&LB. Find the equation…

A: An isoquant depicts all the possible combinations of inputs (labor or L and capital or K in the…

Q: A firm has a production function f(x, y) = 1.80(x0.10 + y0.10)2 whenever x > 0 and y > 0. When…

A: The objective of the question is to determine the returns to scale of the firm's production…

Q: Which of the following production function exhibits constant returns to scale. a)q=KL b)q=KL^0.5…

A: A production function is a mathematical expression that depicts the relationship between inputs…

Q: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: 13. If a firm's production function is given by Q = K0.3L03 then it exhibits a. Decreasing returns…

A: Q = K0.3L0.3 where we take α = 0.3β = 0.3

Q: QUESTION 1 Consider the following production function:

A: Consider the following production function .

Q: The production function y =2( K0.3 L0.2 ) exhibits constant returns to scale.

A: Production function shows relationship between output produced and inputs used in the production.

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: Suppose that a firm’s production function is Q =10 K^(3/4)L^(1/4). The cost of a unit of labor is $1…

A: The interplay between the output that a process gives and the various inputs that go in the process…

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: Problem 1: A firm has the following production function: f(L, M) = min{L, 3M) where L is the number…

A: Returns to scale is an economic concept that explains how the scale of production or the size of a…

Q: QUESTION 12: Let the production function be as follows Q = K2/3L¹/3 Find the cost-minimizing level…

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

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: A farm producing wheat has the following production function q = 100(K0.8L0.2). Does the above…

A: refers to how much output changes given a proportional change in all the inputs i..e where all…

Q: A firm's production function is given by y(K, L) = 2√(KL) or 2(KL).5 (2 times the square root of the…

A: The Marginal Product of Labor (MPL) represents the change in output resulting from employing an…

Q: You are given the following long-run cost function: TC = 200Q - 25Q2 + 1.5Q3 What level of Q will…

A: Here the firm's total cost=TC = 200Q - 25Q2 + 1.5Q3 here the total fixed cost-TFC=0 (since this is a…

Q: Which of the following production functions exhibits constant returns to scale (refer to activities…

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

Q: Assume a Cobb-Douglas production function of the form: q=10L0.98K0.88 What type of returns to scale…

A: Return to scale is the concept that examines how a percentage change in all inputs (e.g., labor,…

Q: Solve for and graph this firm’s isoquant at q = 10. Please label three points along this isoquant…

A: Given q=x113x223 ........... (1)

Q: or each of the following production functions, determine whether it exhibits increasing, constant or…

A: The link between inputs (often labor and capital) and the output of goods or services generated by a…

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…

Q: Consider a production function Q = (K.5 + L.5) 2 Does this production function exhibit…

A: Q=(K0.5+L0.5)2..... (1)Now, In order to check for returns to scale, multiply the variables K and L…

Q: Does the production function y=0.8x_1x_2 exhibit constant returns to scale, increasing returns to…

A: The inputs such as capital, labour and land are used to produce and output in the market is known as…

Q: The cost function of a firm is given as C1 = 400 + 200 + 4Q" using this cost function what is the…

A: here we calculate the efficient scale of the firm by using the cost function so the calculation of…

Q: 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…

A: Returns to scale can be classified into three categories; 1- Increasing returns to scale (IRS) 2-…

Q: Which of the following production functions do not exhibit constant returns to scale? A. F(K, L)= AK…

A: Introduction Returns to scale refers to the how much output changes given a proportional change in…

Question

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: Introduction:

Step 2: Question 3:

Step 3: Question 4:

Solution

Step by step

Solved in 4 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.

Similar questions

Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
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
Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale. Find and graph the cost,average cost, and marginal cost functions. Interpret the graphs andexplain the idea of diminishing returns.
Ignore increasing returns to scale and select constant returns to scale as well as decreasing returns to scale.
Based on your own personal observations of the college, do you think the low-income Community College is experiencing economies of scale, diseconomies of scale, or constant returns to scale? Make certain to explain your answer.
The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
Questions 3. For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = K + L b) Q = L + L/K c) Q = Min(2K,2L) d) Q = (L.5 )(K.5)
Suppose that a production function for labor (L) and capital (K) is given by: q(L,K) = L K0.2 . Does this production function exhibit constant, increasing, or decreasing returns to scale? A. Increasing returns to scale B. Constant returns to scale C. Decreasing returns to scale
The function Q = L0.3 + K0.7 is an example of _____ returns to scale of production.
Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the production function has constant returns to scale.
Identify the returns to scale in the functions below. Production Function a. q = 3L + 2K Returns to Scale constant increasing decreasing
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