Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134643175
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 6, Problem 10E
(a)
To determine
The marginal product of labor and marginal product of capital.
(b)
To determine
The nature of the production function.
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Students have asked these similar questions
In Example 6.4, wheat is produced according to the production function q = 100(K0.8L0.2)a. Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing. b. Does this production function exhibit increasing, decreasing, or constant returns to scale?
Suppose that corns are produced according to the production
function q = 100K + 50L, where q represents pounds of corns
produced per hour, K is the number of acres of land devoted to
corn production, and L represents the number of workers hired
each hour.
1. Does this production function exhibit increasing, constant, or
decreasing returns to scale?
2. Give one reason why this production function is probably not a
very reasonable one.
A firm faces the production function:
q=10L^0.32 K^0.56
(a) What kind of returns to scale does this production function feature? Show work.
(b) Does this production function exhibit downward-sloping and convex isoquants? Explain.
Chapter 6 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
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- Margeʹs Hair Salon production function is Q = f(K, L) = K0.5L0.5 where K is the number of hair dryers and L is the number of labour hours she employs. 1. Prove, with the aid of mathematics, the type of returns to scale exhibited by this production function.arrow_forwardGiven the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a) Mathematically find the minimum cost combination of capital and labour to produce a given level of output.b) Does the production function in part (a) show increasing returns to scale, decreasing returns to scale, or constant returns to scale? Explain. (c) Using isoquants and isocosts, graphically illustrate the effect of an increase in the wage rate, assuming the firm is producing at the same level of output.arrow_forwardDoes this production function exhibit constant returns to scale? Using the marginal products you have computed in the previous part.arrow_forward
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