Question

In: Economics

1. For each of the following production functions, determine if the tech- nology exhibits increasing, decreasing,...

1. For each of the following production functions, determine if the tech-
nology exhibits increasing, decreasing, or constant returns to scale.

a. f(L; K) = L + K
b. f(L; K) = p
L +
p
K
c. f(L:K) = LK + L + K
d. f(L; K) = p

KL + L + K

2. Draw isoquant maps for the following technologies.
i) f(L; K) = LK
ii) g(L; K) = L + 2K
iii) h(L; K) = min(2L; K)

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns...
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 = (L5 )(K5)
For the following two functions prove whether each of the production functions has increasing, decreasing, or...
For the following two functions prove whether each of the production functions has increasing, decreasing, or constant returns to scale. Then find whether the MPL is increasing, decreasing or constant with L. A. ? = ?^1/3?^1/3 B. ? = 3?^3/2
Do each of the following production functions exhibit decreasing, constant or increasing returns to scale? Prove...
Do each of the following production functions exhibit decreasing, constant or increasing returns to scale? Prove your answers. • Q = .5L.34 + K.34 • Q = [min (K, 2L)]2 • Q = (0.3L.5 + 0.7K.5)2 • Q = 4KLM where K, L, M are inputs
3. Do each of the following production functions exhibit decreasing, constant or increasing returns to scale?...
3. Do each of the following production functions exhibit decreasing, constant or increasing returns to scale? Prove your answers. • Q = .5L^.34 + K^.34 • Q = [min (K, 2L)]^2 • Q = (0.3L^.5 + 0.7K^.5)^2 • Q = 4KLM where K, L, M are inputs
Show whether each of the following production functions exhibit increasing, decreasing or constant returns to scale....
Show whether each of the following production functions exhibit increasing, decreasing or constant returns to scale. Q = 0.5KL                                                                                                             [2.5 Marks] Q = 2K + 3L                                                                                                           [2.5 Marks] A firm has the following production function                                   Q = 2(XY) 0.5 Where, X is maize and Y is rice. The cost of maize is K10 and the cost of rice Is K40. The firm has a budget of K80 to spend on the two goods. Formulate the firms’ optimization problem.                                                             [5...
. Under what conditions on a and b do the following production functions exhibit decreasing, increasing...
. Under what conditions on a and b do the following production functions exhibit decreasing, increasing or constant returns to scale? Mathematically justify and show your work. a. Q(L,K) = aL + bK b. Q(L,K) = (La + Ka ) 1/b
Show whether the following production functions exhibit increasing, constant, or decreasing returns to scale. a. Q...
Show whether the following production functions exhibit increasing, constant, or decreasing returns to scale. a. Q = 2L + 3K b.   Q = L + 5K + 10 c.  Q = min (2*L, K) d.   Q = 10*K*L e.  Q = L2 + K2 f.   Q = K.5*L.5/2 + 10
Show whether the following production functions exhibit increasing, constant, or decreasing returns to scale in K and L.
Show whether the following production functions exhibit increasing, constant, or decreasing returns to scale in K and L. Note: “exponents add up to one, so it CRTS” is not an acceptable answer. a. Y=(K1-a + L1-a ) 1/a b. Y=K/L c. Y=K1/4L3/4
Do the following production functions have increasing, decreasing, or constant returns to scale? Which ones fail...
Do the following production functions have increasing, decreasing, or constant returns to scale? Which ones fail to satisfy the law of diminishing returns? ? = min(??, ??) ?=?10.3 ?20.3 ?0.3
Determine over which intervals the following functions are increasing, decreasing, concave up, and concave down y...
Determine over which intervals the following functions are increasing, decreasing, concave up, and concave down y = x + sin(πx)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT