Prove that individual firms are constant return scale(CRS)

Expert Solution

Rahul Sunny answered 2 years ago

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

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

Dispute the Kolmogorov scale in turbulence. Prove that Kolmogorov was wrong.

a) Do the following production functions exhibit constant returns to scale, increasing returns to scale, or...

a) Do the following production functions exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale? For full credit, show why. 1) Q= 10L^ 0.5K^0.3 2) Q= 10L^0.5K^0.5 3) Q= 10L^0.5K^0.7 4) Q= min{K, L} b) Which objects pin down a_LC and a_KC? Explain carefully. c) Why does labor being mobile across sectors automatically imply revenue maximization for firms? Explain carefully.

With appropriate examples, define increasing returns to scale, decreasing returns to scale and constant returns to...

With appropriate examples, define increasing returns to scale, decreasing returns to scale and constant returns to scale. (Please write out answer versus charting it)

Which production function illustrates the case of constant returns to scale?

A xY = F (zK, zL) where x <z B zY = F (zK, zL) C yY =F (zK, zL) where y>z Which production function illustrates the case of constant returns to scale? Which production function illustrates the case of decreasing returns to scale? Which production function illustrates the case of increasing returns to scale? The costs of expected inflation include (choose one or more) A shoeleather cost B menu costs C variability in relative prices leading to microeconomic inefficiencies in the...

Inviolability of individual freedoms in modern liberal states (Constant, Mill, ) B. Constant - The Liberty...

Inviolability of individual freedoms in modern liberal states (Constant, Mill, ) B. Constant - The Liberty of Ancients Compared with that of Moderns J. S Mill - On Liberty please compare and contrast different arguments/theories, identify the limits/problems of each,

Constant returns to scale implies that if N and K both increase by 3% that

2. Constant returns to scale implies that if N and K both increase by 3% that A) Output (Y) will increase by 3%. B) Y/N will increase by 3%. C) Y/N will increase by less than 3%. D) the capital-labor ratio will increase by 3%. 4. Which of the following statements is always true? A) Investment equals depreciation. B) Investment equals the capital stock minus...

Which of the following statements is correct if constant returns to scale are present? A doubling...

Which of the following statements is correct if constant returns to scale are present? A doubling of inputs will lead to output more than doubling. A doubling of inputs will lead to output also doubling. A doubling of output will lead to inputs more than doubling. Output remains constant irrespective of inputs.

Illustrate and discuss the difference between constant, Increasing and decreasing returns to scale.

Question