Suppose the production function for good q is given by q = 3k + 2l where k
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose the production function for good q is given by q = 3k + 2l where k and l are capital and labor inputs. Consider three statements about this function: I. The function exhibits constant returns to scale. II. The function exhibits diminishing marginal productivities to all inputs. III. The function has a constant rate of technical substitution. Which of these statements is true? (please give the explanation and answer)
(a) All of them
(b) None of them
(c) I and II, but not III
(d) I and III, but not II
Expert Answer:
Answer rating: 100% (QA)
Returns to scale Q 3K 2L We will increase both K and L by m and create a new production functi... View the full answer
Posted Date:
Students also viewed these economics questions
-
The production function for a firm is given by Q = LK, where Q denotes output; Land K labor and capital inputs. Wage rate and rental rate are given by w and r respectively. (a) Show whether or not...
-
The production function for a product is given by q = 100KL. If the price of capital is $120 per day and the price of labor $30 per day, what is the minimum cost of producing 1000 units of output?
-
The table to the right represents the production function for Hawg Wild, a small catering company specializing in barbecued pork. The numbers in the cells represent the number of customers that can...
-
What are the explanations given for slow progress towards full acceptance of ISAs?
-
Why is control over unauthorized access so important in a database environment?
-
Doris subscribed for two hundred shares of 12 percent cumulative, participating, redeemable, convertible, preferred shares of the Ritz Hotel Company with a par value of $100 per share. The...
-
The following information is taken from the annual report of the Couche Corporation. Calculate the ratio of the allowance for uncollectible accounts divided by gross accounts receivable. Did this...
-
MVP Corp uses LIFO to value its inventory. The 20x8 inventory records disclose the following: At December 26, 20x8, the company had a special, nonrecurring opportunity to purchase 40,000 units at $17...
-
Your Social Media: Asset or Liability? Your Facebook page represents you to friends and family, but is it a professional asset or a liability? What message are you sending through your participation?...
-
TechGlobe Inc. is a leading technology company specializing in software development. Lisa, the CEO of TechGlobe, has identified a potential acquisition opportunity in the market. The target firm,...
-
Don Bedson is a welder who works for the Iron Strong Company in Winnipeg. Don is paid on a hourly basis at $19.45 per hour and normally works Monday to Friday, at 8 hours per day. During vacation...
-
P2. Discount Retail Company had a balance in the Accounts Receivable account of $760,000 at the end of the last year, 2022, and a balance of $840,000 at the end of this year, 2023. Net credit sales...
-
Problem #2 - special order. Your per unit cost structure for "Happiness" is shown below. A new company which has never purchased from you before approaches you and offers to buy 10,000 units of...
-
According to the World Trade Organization (WTO), a significant percentage of world trade relies on trade finance. Trade finance is trade credit and insurance guarantees, mostly of a short-term...
-
Bill and Darlene have three dependent children ages 10, 12, and 15. Their AGI is $110,000 for 2022. What is their child tax credit for the year?
-
Merchandises of ABC Company and data on purchases and sales for a month of July period follow. It uses the PERPETUAL inventory system July 0 1 : Beginning inventory; 8 0 0 0 units @ $ 1 0 0 each....
-
Question # 1: Will the patients be concerned about Medical device reuse given it is not legal in the USA? Will this prove to be a reason for US insurance companies and patients staying away?...
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
How do we choose a basis for allocating a cost to several departments?
-
Explain what each of the following statements means: a. Service departments do not work directly on products. b. Service department costs are manufacturing overhead costs. c. Overhead rates are not...
-
Briefly describe the general format, data, and calculations that would appear on an overhead distribution worksheet for a company with a number of production and service departments.
Study smarter with the SolutionInn App