Show that with a constant returns to scale production function, the MRTS between labor and capital depends
Question:
Show that with a constant returns to scale production function, the MRTS between labor and capital depends only on the K/L ratio and not on the scale of production?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (7 reviews)
With 1 f 1 xL xK ...View the full answer
Answered By
PU Student
cost accounting
financial accounting
auditing
internal control
business analyst
tax
i have 3 years experience in field of management & auditing in different multinational firms. i also have 16 months experience as an accountant in different international firms. secondary school certification.
higher secondary school certification.
bachelors in mathematics.
cost & management accountant
4.80+
4+ Reviews
10+ Question Solved
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Question Posted:
Students also viewed these Economics questions
-
Draw the long-run total cost and long-run average cost curves for a firm that experiences: a. Constant returns to scale over all output levels. b. Diseconomies of scale over low levels of output,...
-
Business Application: Valuing Land in Equilibrium: Suppose we consider a Robinson Crusoe economy with one worker who has preferences over leisure and consumption and one firm that uses a constant...
-
Extension of the Cobb-Douglas Production FunctionThe Cobb-Douglas production function can be shown to be a special case of a larger class of linear homogeneous production functions having the...
-
For show by the method described in this chapter that the following pairs of FAs are equivalent: FA +1 (1 (1 a. b FA a b
-
A water cannon sprays 1 kg/s liquid water at a velocity of 100 m/s horizontally out from a nozzle. It is driven by a pump that receives the water from a tank at 15C, 100 kPa. Neglect...
-
Brie signs an instrument in which she promises to pay Carmen a certain price for her Dodge Dart. The instrument will be negotiable if it meets all of the requirements for negotiability, including...
-
For each of the following, calculate the standard error of the difference \(\left(s \mathrm{X}^{-} 1-\mathrm{X}^{-} ight.\)\(2)\). a. N = 10, s = 2.00, N = 10, s2 = 3.00 b. N = 19,51 1.73, N = 19, 52...
-
The following information describes transactions for Morgenstern Advertising Company during July: a. On July 5, Morgenstern purchased and received $21,500 of supplies on credit from Drexel Supply...
-
1. A small company produces a product (X) that requires two types of inputs, A and B during production. Each unit of X requires exactly 5 units of A and 2.5 units of B. If the cost of A is $10 a unit...
-
Each of the flowchart segments in Figure 3-24 is unstructured. Redraw each segment so that it does the same processes under the same conditions, but is structured. a. D Yes NO Yes B? E? No F H C. Yes...
-
A production function is said to be homogeneous of degree ( if ((xL, xK) = x(((L, K), where x is a positive constant. That is, the production function has the same returns to scale for every...
-
Prove Euler's theorem that, if f(L, K) is homogeneous of degree ( (see Exercise 5.7), then L((f/(L) + K((f/(K) = (((L, K). Given this result, what can you conclude if a production function has...
-
Management accountants hold an extremely powerful position in an entity, and this enables them to influence most of the decisions. How far do you think that this assertion is likely to be true in...
-
An accountant for a corporation forgot to pay the firm's income tax of $725,714.93 on time. The government charged a penalty of 9.3% interest for the 39 days the money was late. Find the total amount...
-
Evaluate the expression 3- 10i 8+52 and write your answer in the form a + bi. a = and b =
-
Simplify: u ,14 428 (You may assume any variables are greater than zero.)
-
(4) Solve the initial value problem: 3 xy' +2y=3x, y(1) = -2. Linear, order one: y = x + cr 3 IVP: C = - 11/3 y = n
-
Solve the inequality. 17x+8 2(x - 1)
-
Study each of the following case. Answer the questions that follow with Yes or No. Jones, a popular radio personality, uses the name Rocky Shores on his show. The name Rocky Shores has been...
-
Write a function that reads a Float24_t value: Float24_t float24_read(void) A legitimate float24 value string is of the form: "mantissabexponent" where the mantissa (m) and the exponent (e) may have...
-
If a firm lays off workers during a recession, how will the firms marginal product of labor change?
-
Nicolas has purchased a streaming audio service for $8.00 per month. As he now listens to more songs in a month, he spreads this fixed cost over a larger quantity, q. Derive an algebraic formula for...
-
A Chinese high technology firm has a production function of q = 10L 0.28 K 0.66 (Zhang et al., 2012). It faces factor prices of w = 10 and r = 20. What are its short-run marginal and average variable...
-
1. Negative impact of blockchain technology on taxation in the accounting profession. 2.what are the factors that influence an organisations work practice and expectations of an accounting...
-
What do you think of modeling an entire culture on just six dimensions? Are there aspects of the culture that are not covered by these dimensions? What do you think of the mere concept of culture as...
-
A business organisation is a system. It consists of many subsystems, such as departments, divisions, process teams and other workgroups. Organisations are designed for the purpose of creating...
Study smarter with the SolutionInn App