The production function of good x is as follow: a. Does this production function have increase,...
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The production function of good x is as follow: a. Does this production function have increase, constant or decreasing returns to scale? IRS, DRS or CRS) Slope = Q=L0.5 K-0.4 b. Calculate the slope of the isoquant when the entrepreneur is producing efficiently with 10 labourers and 20 units of capital. (Answer as a fraction or decimal.) needed for us to stay on the same isoquant? K= c. If we increase the amount of labour we use in our production process from 10 to 15 units, how much change in capital is (yes/no)? (Answer either d. Is diminishing return a characteristic of this production function? For labour? (yes/no) ; For Capital The production function of good x is as follow: a. Does this production function have increase, constant or decreasing returns to scale? IRS, DRS or CRS) Slope = Q=L0.5 K-0.4 b. Calculate the slope of the isoquant when the entrepreneur is producing efficiently with 10 labourers and 20 units of capital. (Answer as a fraction or decimal.) needed for us to stay on the same isoquant? K= c. If we increase the amount of labour we use in our production process from 10 to 15 units, how much change in capital is (yes/no)? (Answer either d. Is diminishing return a characteristic of this production function? For labour? (yes/no) ; For Capital
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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