Question: Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale. a. Q = 75L0.25

Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.
a. Q = 75L0.25 K0.75
b. Q = 75A0.15 B0.40 C0.45
c. Q =75L0.60 K0.70
d. Q = 100 + 50L + 50K
e. Q = 50L + 50AT + 50 LK
f. Q = 50L2 + 50 K2
g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.

Step by Step Solution

★★★★★

3.57 Rating (182 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a CRTS b CRTS c IRTS d DRTS e IRTS f IRTS g For ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

935-B-E-M-E (6490).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

American Airlines produces round- trip transportation between Dallas and San Jose using three inputs: capital (planes), labor (pilots, flight attendants, and so on), and fuel. Suppose that Americans...

Suppose Noble's production function (see Problem 7) is as follows: Q = 7V - 0.5V2 where Q is the number of widgets produced per day and Vis the number of production workers working an 8-hour day. a....

The production function slopes upward, but its slope declines from left to right. Give an economic interpretation of each of these properties of the production function.

Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.n a. Q = 75L0.25 K0.75n b. Q = 75A0.15 B0.40...

I`. Following are different algebraic Expressions of the production function. Decide Whether with one has constant , Increasing or decreasing returns to scale . _ TO` + SOL + FOR` F. Based on the...

Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale. a. Q 5 75L0.25K0.75 b. Q 5...

Consider; Last unit, you produced a Relational Data Model from and ER Diagram. This unit, we will finally create a real Relational Database using Microsoft Access. You are given a new Relational Data...

I. Which of the following is correct? a) The pivot of the budget line shows the substitution effect while a slope gives the income effect. b) The pivot of the budget line shows the substitution...

PLS HELP ME 6. (4p) Consider a Heckscher-Ohlin model with two countries, Home and Foreign, and two factors of production, land (T) and labor (L). Land and labor are used to produce two goods, gadgets...

help me pliz Problem 4 (23 points) Firm X has the following production function (K, I) = (1 + K2/3). 1. (6 points) Find the marginal product of labor and capital and the marginal rate of technical...

Entity A had total assets and total liabilities of 120M and 85M, respectively, at the beginning of the period. During the period, Entity A earned total income of 60 and incurred total expenses of 45....

During the month, Orion Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) Debit entries only, (b)...

Researchers tried to measure the impact of banning a controversial sponsor on a sports team's success ( market value in $ millions ) . Markets for English soccer clubs were classified as one of four...

Supply-side economists argue that less government spending a. will contract the productive side of the economy. b. will result in more crowding out. c. causes higher rates of unemployment and...

In the final round of a TV game show, contestants have a chance to increase their current winnings of 1 million dollars to 10 million dollars. If they are wrong, their prize is decreased to $100,000....

1. Six bidders in an oral auction place the following values on a good: ($6, $5, $4, $3, $2, $1). In an oral competitive auction, what is the winning price? a. $3 b. $4 c. $5 d. $6 2. Suppose that...

Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25,000 if the boat is a total loss. If the boat is not a total loss but...

C Its reach is from negative endlessness to positive boundlessness Mean C Middle C Mode Midrange . A 95% certainty stretch for the mean can be between preted to imply that: C if all potential...

Katy Williams is the manager of Blue Light Arcade. The company provides entertainment for parties and special events. a, Blue Light Arcade received $58 cash on account for a birthday party held two...

I have to do an annual report of Motorola solution inc. I need help with these questions Just provide all these information of the firm with some explination of each part. 1- Executive Summary The...