a. Does this change in the production function change the returns to scale? b. Is this change

Question:

a. Does this change in the production function change the returns to scale?
b. Is this change in the production function an illustration of technological progress?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Question Posted: Mar 17, 2016 04:53 AM

See More Questions

A firm's production function is initially Q = KL, with MPK = 0.5(L/K) and MPL = 0.5(K/L). Over time, the production function changes to Q = KL, with MPK = L and MPL = K. a) Verify that this change...
A firm's production function is initially Q = KL, with MPK = 0.5(L/K) and MPL = 0.5(K/L). Over time, the production function changes to Q = KL, with MPK = L and MPL = 0.5(K/L). a) Verify that this...
Suppose that your firm's production function has constant returns to scale. What is the long-run expansion path?
Suppose a city finds that its express highways into the city are congested and it is considering two remedies: (1) imposing a congestion charge on all users of its expressways during the peak periods...
What is the difference between partial completeness and total completeness?
Nike had sales of $44.487 billion in 2021. Suppose you expected its sales to grow at a rate of 18% in 2022, but then slow by 3% per year to the long-run growth rate that is characeristic of the...
Universal Solar Ltd operates three departments a lighting department, a water heating department, and an equipment department. The stores accountant has prepared a statement of financial performance...
Nathan Matthews conducted a test of controls where the tolerable deviation rate was set at 6 percent and the expected population deviation rate was 3 percent. Using a sample size of 150, Matthews...
Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $57,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated...
Did GE violate the rules for revenue recognition (pre-2016-change) on the "sale" of its locomotives? Explain.
For the production function Q = 6L2 L3, fill in the following table and state how much the firm should produce so that: a) Average product is maximized b) Marginal product is maximized c) Total...
Suppose that the production function for DVDs is given by Q = KL2 L3, where Q is the number of disks produced per year, K is machine-hours of capital, and L is man-hours of labor. a) Suppose K =...
The curve shown has a maximum at A( 1, 4) and a minimum at B(2, 8). On separate diagrams sketch a) y = f(x) + 4 b) y = 1/2f(x) Show clearly the coordinates of the maximum and minimum points and...
Define price, perceived value, and perceived benefits. What is the relationship among price, value, and benefits?
Define the source of a sports marketing message and provide some examples of effective sources. What is source credibility? What are the two components of source credibility?
Describe positioning and discuss how perceptual mapping techniques are used by sports marketers. What is repositioning?
How is the health and fitness industry segmented in general? Describe the segmentation, targets, and positioning of health and fitness clubs in your area.
Describe the elements of the communication process. Why is communication so important for sports marketers? What is the relationship between communication and promotion?
The first term in an arithmetic progression is a and the common difference is d. Write down expressions, in terms of a and d , for the seventh term and the 19th term.
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
1. The producers of branded drugs are responding to the introduction of generic competitors by _______and_______. 2. Ninja Turtles versus Tai Chi Frogs. The demand for fantasy amphibians is linear,...
1. The advertisers dilemma is that both firms would be better if ______ advertises, but each has an incentive to ______. 2. The advertisers dilemma shown in Figure occurs when advertising causes a...
1. The advertisers dilemma is that both firms would be better if ______ advertises, but each has an incentive to ______. 2. The advertisers dilemma shown in Figure occurs when advertising causes a...
Explain and analyze how social entrepreneurship helps the development of a society. Justify your answer using theoretical approaches mentioned in the lesson, as well as real examples.
Discuss how the five forces model can be used to analyze the pharmaceutical industry and determine the best strategies for success.
How does a firm's external environment impact its strategic decision making process?

a. Does this change in the production function change the returns to scale? b. Is this change

Question:

Step by Step Answer:

a No In both the 21 st and 23 rd centuries the produ...View the full answer

Microeconomics

Students also viewed these Economics questions