Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Question
Chapter 7, Problem 1.5CE
To determine
To know: Type of returns to scale by given function.
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Students have asked these similar questions
Which of the following production functions exhibits constant return to scale?
A) q=KL
B) q=KL0.5
C) q=K+L
D) q=log(KL)
e) Do the following production functions exhibit increasing, constant, or decreasing
returns to scale:
i) q = L +3K+2
ii) q = LK
iii) q = 0.4K + 3L:
For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = 2K + L b) Q = 3L + L/K c) Q = Min(2K,L) d) Q = L*K
Chapter 7 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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- Please get this correct. Thanks so much.arrow_forwardConsider several production functions below and indicate whether they exhibit constant, increasing or decreasing returns to scale. i) Q = L1/2 K1/2 ii) Q = 2L + 3K iii) Q = L2 iv) Q = L1/2arrow_forwardQUESTION 1 For the production function Qs = | K0.8 0.3 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).arrow_forward
- Which of the following production function exhibits constant returns to scale. a)q=KL b)q=KL^0.5 c)q=K+l d)q=log(KL)arrow_forwardQuestions 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)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_forward
- Assume a Cobb-Douglas production function of the form: q = 10L0.24 K0.51 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal (Enter a numeric response using a real number rounded to two decimal places.)arrow_forwardWhich of the following production function would exhibit increasing returns to scale? f(K, L) = (K+ L)1/2 f(K, L) = K + L f(K, L) = K1/4+ [1/4 Of(K, L) = KIL None of the abovearrow_forwardThe production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]arrow_forward
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