Prove that the following Cobb-Douglas function exhibits increasing returns to scale while having a diminishing marginal...

Prove that the following Cobb-Douglas function exhibits increasing returns to scale while having a diminishing marginal product of each factor: Y=x₁^.5x₂^.6

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Rahul Sunny answered 2 years ago

4. (a) If a production function exhibits increasing returns to scale and the quantity of all...

4. (a) If a production function exhibits increasing returns to scale and the quantity of all inputs is doubled, what happens to output? (b) If a production function exhibits increasing returns to scale and the scale of output is doubled, what happens to the average cost per unit produced

In that law, we see increasing returns at the start of production, production then exhibits diminishing...

In that law, we see increasing returns at the start of production, production then exhibits diminishing returns until it peaks, and then will exhibit negative returns if we attempt to push beyond that. Now, think about your work day - it could be a work day at your place of employment or a work day of school activities or a workday at home if you are a homemaker. Provide two examples of how your work day exhibits increasing returns, diminishing...

5. A Cobb-Douglas production function will yield a cost function that has constant Marginal Cost a....

5. A Cobb-Douglas production function will yield a cost function that has constant Marginal Cost a. True b. False ______ 6. The MC of a firm will intersect the ATC at the minimum point of MC a. True b. False _____ 7. For a cost-minimizing firm, it can continue to operate even if profits are negative. a. True b. False _____ 8. What cost concept do you use to determine whether a firm will shut down? a. Marginal Cost b....

Q5. Find if each Cobb-Douglas production functions below is constant return to scale, increasing return to...

Q5. Find if each Cobb-Douglas production functions below is constant return to scale, increasing return to scale, or decreasing return to scale? Q=20K^0.8 L^0.5 Q=35K^0.8 L^0.8 Q=40K^0.3 L^0.5

Consider an economy with the following Cobb-Douglas production function:

Chapter 7, Labor Market Regulation (3 points):• Consider an economy with the following Cobb-Douglas production function:Y =k^1/3L^2/3The economy has 1,000 units of capital and a labor force of 1,000 workers.(a) Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock (Hint: Review Chapter 3.)(b) If the real wage can adjust to equilibrate labor supply and labor demand, what is the real wage? In this equilibrium, what are employment, output, and...

A cliché that sums up the concept of diminishing marginal returns/increasing marginal costs is: Question 8...

A cliché that sums up the concept of diminishing marginal returns/increasing marginal costs is: Question 8 options: Question 33 (5 points) Which of the following are examples of price discrimination (select all that apply): Question 33 options: A restaurant charges "senior citizens" 15% percent lower prices than other customers. An airline charges more for first class seats than for economy class seats. An online retailer charges different prices based on shipping costs. A theater charges lower prices for matinees (movies...

Define the production function. Discuss why the production function exhibits diminishing returns. What is job rationing...

Define the production function. Discuss why the production function exhibits diminishing returns. What is job rationing and how does it relate to unemployment? What factors can lead to job rationing? Briefly explain these factors.

which casr increase the marginal product of labor when the production function is a cobb-douglas type...

which casr increase the marginal product of labor when the production function is a cobb-douglas type and require both capital and labor as factors of production? a increase in the capital b, increase in labor c, increase in the capitsl income share d, all above

What is the difference between decreasing returns to scale and diminishing marginal product? [5 pts.]

Cobb-Douglas...again Consider the Cobb-Douglas production function function of the form, q(k, l) = k α l...

Cobb-Douglas...again Consider the Cobb-Douglas production function function of the form, q(k, l) = k α l 1−α (a) Determine the relation between α and the marginal product of k and l. For what values of α is the marginal product for each input: (i) increasing, (ii) constant, and, (iii) decreasing. (b) Show that the marginal rate of technical substitution (MRTS) is equal to α 1 − α l k . For what values of α is MRTS decreasing in k?...

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