For the Cobb-Douglas production function in Problem 6.7, it can be shown (using calculus) that MPK =
Question:
MPK = aKa-1 Lb
MPL = bKa Lb-1
If the Cobb-Douglas exhibits constant returns to scale (a þ b ¼ 1), show that
a. Both marginal productivities are diminishing.
b. The RTS for this function is given by
RTS = bK/aL
c. The function exhibits a diminishing RTS.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
a If a b 1 MP K a LK b MP L bKL ...View the full answer
Answered By
Cristine kanyaa
I possess exceptional research and essay writing skills. I have successfully completed over 5000 projects and the responses are positively overwhelming . I have experience in handling Coursework, Session Long Papers, Manuscripts, Term papers, & Presentations among others. I have access to both physical and online library. this makes me a suitable candidate to tutor clients as I have adequate materials to carry out intensive research.
4.90+
1538+ Reviews
3254+ Question Solved
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-0324599107
11th edition
Authors: walter nicholson, christopher snyder
Question Posted:
Students also viewed these Economics questions
-
It can be shown that if |d2y / dx2| M on a closed interval with c and c + Ax as end points, then |y - dy| 1/2M(x)2 Find, using differentials, the change in y = 3x2 - 2x + 11 when x increases from 2...
-
On January 1, 2023, Highland leased equipment to Larkin Company under a six-year noncancelable lease agreement. The following information about the lease and the equipment is provided: 1. Equal...
-
For the k-variable regression model, it can be shown that the variance of the kth (k = 2, 3, . . . , K) partial regression coefficient given in Eq. (7.5.6) can also be expressed as where Ï 2 y =...
-
Please solve all the letters, and please show all work indetail. If you use excel please show other excel box showing whatyou inputted in the excel boxes.. Thanks!!! 5. Growth opportunities. The firm...
-
. A hydraulic press was installed 10 years ago at a capital investment cost of $70,000. This press presently has a market value of $14,000. If kept, the press has an economic life of three years,...
-
Determine the flexibility matrix for the systems of Figure P7.19 using the indicated generalized coordinates and flexibility influence coefficients. L XIV www Identical slender rods of length L and...
-
Determine the decomposition pressure of calcium carbonate at \(600 \mathrm{~K}\) and \(1000 \mathrm{~K}\). Also determine the decomposition temperature at 1 bar.
-
Green Hills County received the following two contributions during a year: A developer (in exchange for exemptions to zoning restrictions) donated several acres of land that the county intended to...
-
How Safe Are Treasury Bonds? In the popular press, Treasury bonds (T-bonds) are commonly referred to as being ultra-safe. The party line goes something like this: "The US Treasury issues various...
-
Consider a vibrating system of your choice modeled by y" + cy' + ky = (t). (a) Using graphs of the solution, describe the effect of continuously decreasing the damping to 0, keeping k constant. (b)...
-
The production function q = Ka Lb Where 0 a, b 1 is called a Cobb-Douglas production function. This function is widely used in economic research. Using the function, show the following: a. The...
-
The production function for puffed rice is given by q = 100 KL Where q is the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired...
-
How might a government budget deficit lead to inflation?
-
A car of mass 972 kg is traveling 20.4 m/s when the driver applies the brakes, which lock the wheels. The car skids for 4.27 s in the positive x-direction before coming to rest. HINT (a) What is the...
-
3.8. A driver going too fast for the icy conditions sees a truck stopped ahead and slams on the brakes. Their car (mass = 1000 kg) skids along the icy road and collides with the truck (mass - 3000...
-
A boy exerts a horizontal force of 137 N on a crate with a mass of 36.2 kg. HINT (a) If the crate doesn't move, what's the magnitude of the static friction force (in N)? N (b) What is the minimum...
-
3.6. (a) Show that the definitions of momentum and kinetic energy can be combined to express kinetic energy in terms of p and m without any v for velocity. (b) Someone looking at the expression you...
-
3.2. Two physics carts are on an essentially frictionless track. One cart has a mass of 0.5 kg, the other has a mass of 1.5 kg, and they have velcro that makes them stick together when they collide....
-
Analyze the structure in Figure P11.28 by moment distribution. Draw the shear and moment curves. Sketch the deflected shape. Also compute the horizontal displacement of joint \(B\). \(E\) is constant...
-
The graph of an equation is given. (a) Find the intercepts. (b) Indicate whether the graph is symmetric with respect to the x-axis, the y-axis, or the origin. -3 6 -6 3 x
-
Describe what happens if you apply binary search to an unordered array. Why shouldn't you check whether the array is sorted before each call to binary search? Could you check that the elements binary...
-
Distinguish between behavioral and neoclassical economics. What are the relative merits of each approach? Would you expect the relative merits to change as knowledge advances?
-
One oddity often observed in the market is that stores charge prices ending in 99 (so we see prices of $1.99, $5.99, and so forth). Explain why this sort of pricing might be puzzling to economists....
-
Behavioral economists have different views of the anomalies uncovered by experiments. Some view the anomalies as evidence of mistakes in decision making. Others view the anomalies as providing a new...
-
Electric energy units are often expressed in "kilowatt-hours." (a) Show that one kilowatt-hour (k Wh) is equal to 3.6 x 10 J. (b) If a typical family of four uses electric energy at an average rate...
-
What are the ethical and safety implications of deadlocks in critical infrastructure systems, such as power grids or medical devices, and what measures can be taken to ensure high reliability and...
-
Discuss the economic rationale for fiscal decentralisation with reference to the Tiebout model. How would you characterise the empirical support for the model's implications?
Study smarter with the SolutionInn App