Consider the production function Q = 100L.5K.4. Suppose L = 1 and K = 1 so that
Question:
a. If L is increased by 1 percent, that is, to L = 1.01, with capital unchanged, what is the resulting percentage increase in output?
b. Describe the nature of returns to scale for this production function.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
a Q 100101 5 1 1005 Output increases by 5 In general the power co...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Managerial economics
ISBN: 978-1118041581
7th edition
Authors: william f. samuelson stephen g. marks
Question Posted:
Students also viewed these Economics questions
-
Consider the production function Q = 10L -.5L2 + 24K - K2 for L and K in the range 0 to 10 units. Does this production function exhibit diminishing returns to each input? Does it exhibit decreasing...
-
Suppose that for the production function q = f( L, K), if L = 3 and K = 5 then q = 10. Is it possible that L = 3 and K = 6 also yields q = 10 for this production function? Why or why not?
-
A firm produces an output with the production function Q = KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for...
-
In Exercises, find the limit. lim (4x- x 16x - x
-
What is a biological control agent? Briefly describe two examples.
-
The following amounts appeared on Plymouth Electronics adjusted trial balance as of December 31, 2017. Required 1. Prepare a 2017 classified, multiple-step income statement for Plymouth Electronics,...
-
Explain the difference between a. Actors and stakeholders. b. Primary and supporting actors.
-
Select a company you are interested in and obtain its annual reports by going to the companys website. Download the annual report for the most recent year. (On many companies websites, you will need...
-
Today, you are purchasing a $85,000 20-year car loan at 6 percent. You will pay annually at the end of each year. What is the amount of each payment?
-
a. Refer to the table below. What is the cumulative budgeted cost at the end of week 6? Amounts are in thousands of dollars. b. Below is a table of actual costs. What is the cumulative actual cost at...
-
A firm is producing a given amount of output at least cost using a mix of labor and capital (which exhibit some degree of substitutability). Using an isoquant graph, show that if one input price...
-
In her last-minute preparations for final exams, a student has set aside five hours to split between studying for two subjects, finance and economics. Her goal is to maximize the average grade...
-
Boris is an unmarried systems specialist with a public accounting firm. During all of 2016, he is on temporary assignment in London. He pays $21,000 in British income tax on his $100,000 salary....
-
The Wicker company has one repair specialist who services 200 machines in the shop and repairs machines that break down. The average breakdown rate is = .5 machine per day (or 1 breakdown every 2...
-
Draw all possible binary trees that have four leaves where all nonleaf nodes have two children.
-
You are sketching equipotentials for a positively charged particle, having defined \(V=0\) at infinity. If you draw the \(5.0-\mathrm{V}\) equipotential as a circle with a radius of \(50...
-
Create a query that summarizes the value of products currently in inventory. Note that the value of each product is a result of multiplying the units currently in inventory by the unit price. Sort...
-
Consider a spherically symmetrical distribution of charged particles. The magnitude of charge for the distribution is \(q\), and the radius of the distribution is \(R\). The electrostatic potential...
-
The primary factor in the successful implementation of Six Sigma is to have: a. The necessary resources b. The support/leadership of top management c. Explicit customer requirements d. A...
-
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
-
Explain how you would undertake (i) a choice experiment and (ii) a travel-cost study of the benefits of improved management of a national park. What information could such studies generate that would...
-
Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning. a. Cournot oligopoly. b. Stackelberg oligopoly. c. Bertrand oligopoly.
-
Two firms compete in a market to sell a homogeneous product with inverse demand function P = 400 2Q. Each firm produces at a constant marginal cost of $50 and has no fixed costs. Use this...
-
Consider a homogeneous-product duopoly where each firm initially produces at a constant marginal cost of $100 and there are no fixed costs. Determine what would happen to each firms equilibrium...
-
Suppose that the net income view were to be correct in Problem 1. Describe a profitable investment strategy for investors in the companys bonds and equity if the company were to reduce its debt. What...
-
A piece of land in Ottawa with an area of 0.5 square kilometers is priced at 5200 Canadian dollars. If there are 0.9955 Canadian dollars per (U.S.) dollar, then what is the price in dollars per...
-
Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $ 6 6 , 2 0 0 and $ 2 5 , 2 0 0 , respectively. In addition to their salaries, they received...
Study smarter with the SolutionInn App