If the Cobb-Douglas production function is q = L 0.75 K 0.25 , and K = 16,

Question:

If the Cobb-Douglas production function is q = L^0.75K^0.25, and K = 16, what is the elasticity of output with respect to labor?

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics Theory And Applications With Calculus

ISBN: 978-0134167381

4th Edition

Authors: Jeffrey M. Perloff

See More Books

Question Posted: Jul 11, 2018 07:05 AM

See More Questions

A monopoly has a Cobb Douglas production function per hour Q (K, L) = K^1/3 L^1/3. The cost of capital (rent) is $27 per hour and the cost of labor (wage) is $8 per hour. Moreover, this firm has a...
Suppose that the elasticity of output with respect to the capital input, b, equals 0.3. (a) If the countrys income has been growing at 3.1 percent per year over the past 25 years, while the labor...
Find the rate of change of output with respect to time, if the production function is Q=A(t)K(alpha)L(beta), where A(t) is an increasing function of t, and K=K0 + alpha t and L=L0 + beta t.
Benny sells an apartment building. His adjusted basis for regular income tax purposes is $450,000, and it is $475,000 for AMT purposes. He receives $700,000 from the sale. a. Calculate Bennys gain...
Topple Corporation leases skyscrapers in cities throughout the world to large corporations. Topple's cost of debt financing is 9%, its cost of equity is 12%, and its tax rate is 35%. Required:...
What are the benefits of owning a franchise? What are the drawbacks?
How does an objects interface relate to services that the object provides?
Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep discount with a coupon rate of 4% and a price of $580 to yield 8.4%. The...
The Assembly Department of the Long-Distance Golf Club Super Driver Company, has the following production and cost data at the end of March, 2021. Production: 21,800 units started into production;...
1. Using the spreadsheet model from Case 2.1 as a starting point, use Solver to find the optimal set of projects to approve. The solution should maximize the total NPV from the approved projects, and...
Are firms with limited liability likely to be larger than other firms? Why?
Based on the information in the Application Malthus and the Green Revolution, how did the average product of labor in corn production change over time?
If the inverse market demand function facing a duopoly is p = a - bQ, what are the Nash- Cournot equilibrium quantities if the marginal cost of Firm 1 is m and that of Firm 2 is m + x, where x > 0?...
With Distributed event matching (DEM) the following discussions are centered on it. 1.Discuss cases of digital transparency DEM may provide relating to implementation styles. 2.Discuss the cases of...
Consider the following C++ program. At the top you can see the interface for the SafeArray class that lists the public methods and the private attributes. Next, we have the implementation of all of...
1. What metrics could be used to assess the operational effectiveness for a given feature according to Kavadias et al.? 2. Propose at least two ideas you believe the organization may use to become...
C++ Error upon run Description Resource Path Location Type expected ';' at end of member declaration operand.h line 13 and "expected ')' before '&' token operand.h line 13". operand.h*** #ifndef...
C++ Improper Function Definitions in Header Files Explanation: Ensure that the function definitions in header files (e.g., subexpression.h, operand.h, etc.) are correctly defined. How would I...
A company that makes micro motion compact coriolis meters purchased a new packaging system for $600,000. The estimated salvage value was $28,000 after 10 years. Currently the expected remaining life...
Distinguish among total-moisture content, free-moisture content, equilibrium-moisture content, unbound moisture, and bound moisture.
The invention of a new machine serves as a mobile station for receiving and accumulating packed flats of strawberries close to where they are picked, reducing workers time and burden of carrying full...
A bottling company uses two inputs to produce bottles of the soft drink Sludge: bottling machines (K) and workers (L). The isoquants have the usual smooth shape. The machine costs $ 1,000 per day to...
A bottling company uses two inputs to produce bottles of the soft drink Sludge: bottling machines (K) and workers (L). The isoquants have the usual smooth shape. The machine costs $ 1,000 per day to...
Write the feature of Super's Career Development Assessment and Counseling (C-DAC) system?
Describe one type of role-play technique you could use in a specific group setting. Explain who would benefit from this technique and why. Toseland, R. W., & Rivas, R. F. (2017). An introduction to...
Suppose that a manager is following a base stock policy where the optimal inventory position is 10. Assume the component lead time is 2 days. At the end of day 1, there is no ordered units yet to be...

If the Cobb-Douglas production function is q = L 0.75 K 0.25 , and K = 16,

Question:

Step by Step Answer:

The elasticity of output pro...View the full answer

Microeconomics Theory And Applications With Calculus

Students also viewed these Business questions