Question: Consider the following production function . Does this production function exhibit constant returns to scale? (Hint: Replace K and L by 2K and 2L respectively

Consider the following production function

. Does this production function exhibit constant returns to scale?

(Hint: Replace K and L by 2K and 2L respectively and check if .)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Foundations Macroeconomics Questions!

Q:

1. Consider the following production function: Y = F1K, L2 = A12K + 3L2. Does this pro- duction function exhibit constant returns to scale? (Hint: Replace K and L by 2K and 2L, respectively, and...

Q:

Consider the following production function: Y = F(K,L)=A(2K+3L) Does this production function exhibit constant returns to scale? (Hint: Replace K and L by 2K and 2L, respectively, and check if...

Q:

Consider the following production function: Y = F(K, L) = A(2K + 3L). Does this production function exhibit constant returns to scale? (Replace K and L by 2K and 2L, respectively, and check if F(2K,...

Q:

Q3: Consider the following production function: Q = K 1/3 L 1/3 with rental costs r and labour costs w. a) Draw the isoquant for Q = 100. b) Does this production function exhibit increasing,...

Q:

Please only answer questions e , f , g and h. Thanks Question 1 Consider the following production function: y = max) = 4L%K% where L and K are the amount of labour and capital used in the production...

Q:

Question 1 Consider the following production function: y = F(L, K) = 40=K3 where L and K are the amount of labour and capital used in the production process, and y is the output. Throughout this...

Q:

qyestion 3(e) (f) and (g) and 4 3. Consider the following production function with inputs L and K: Q = (L + K)2 The input prices of L and K, w and r respectively, are both 1. (a) Is it constant,...

Q:

Question 1 is an open question. For questions 2 and 3 select one alternative and provide a short motivation, without motivation, you will receive zero points. 1. Consider the following production...

Q:

Please solve 5. Answer all parts (a)-(e) of this question. Consider the following production function: Q = 3K 1 3L 1 3, with marginal products given by MPL = K 1 3 L 2 3 and MPK = L 13 K 2 3. Define...

Q:

A= 7 and B= 8 For this exercise replace 'A' with the last digit of your ASU ID# and 'B' with the second-to-last digit of your ASU ID#. Consider the following production function: y= [(A+ 1)ri+ (B+...

Q:

Dunleavy Furniture Gallery, Inc., provided the following data from the companys records for the year ended December 31, 2010: a. Credit sales, $567,000 b. Loan to another company, $12,800 c. Cash...

Q:

The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows: Sweet Dreams is considering eliminating the pillows product line. If they do so,...

Q:

Question: 5 4 - 5 Which of the following types of payments made by a private organization would not be subject to all statutory deductions? Performance bonus Retroactive adjustment Vacation pay when...

Q:

Draw all constitutional isomers with molecular formula C 4 H 11 N, and provide a name for each isomer.