Is it possible that a firm’s production function exhibits increasing returns to scale while exhibiting diminishing marginal productivity of each of its inputs? To answer this question, calculate the marginal productivities of capital and labor for the production of electronics and equipment, tobacco, and primary metal using the information listed in the “Returns to Scale in U. S. Manufacturing” Mini- Case.
Answer to relevant QuestionsThe BlackBerry production function indicated in the text is Q = 2.83L1.52 K0.82. Epple et al. (2010) estimate that the production function for U. S. housing is q = 1.38L0.144 M0.856, where L is land and M is an aggregate of ...During recessions, U.S. firm lay off a larger proportion of their workers than Japanese firm do. (It has been claimed that Japanese firms continues to produce at high levels and store the output or sell it at relatively low ...The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $ 10 an hour. Each worker can clean four offices in an hour. Use math to determine the variable cost, the average ...California’s State Board of Equalization imposed a higher tax on “alcopops,” flavored beers containing more than 0.5% alcohol-based flavorings, such as vanilla extract (Guy L. Smith, “On Regulation of ‘Alcopops,’ ...In figure, show that there are wage rates and capital rental costs such that the firm is indifferent between using the wafer-handling stepper technology and the stepper technology. How does this wage/ cost of capital ratio ...
Post your question