Question: 3. Suppose the production function is Q=L1/3 K1/3 where L is the amount of labor and K is the amount of capital. a. Does

3. Suppose the production function is Q=L1/3 K1/3 where L is the

 

3. Suppose the production function is Q=L1/3 K1/3 where L is the amount of labor and K is the amount of capital. a. Does the function exhibit increasing, constant or decreasing returns to scale? b. Name one of the reasons for the type of returns to scale you have found in part (a) and explain. C. What is the elasticity of substitution for this production function?

Step by Step Solution

★★★★★

3.37 Rating (150 Votes )

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 Economics Questions!

Q:

A table of residuals is shown. x y Residual 1 1 -1.25 2 3 0.125 3 2 -1.5 3 7 3.5 4 4 -0.125 6 4 -1.375 6 6 0.625 7 6 0 Which ordered pair appears to be an outlier, and what effect does it have on the...

Q:

Exhibit 11-3 Aggregate demand and supply model Price level (CPI) 250 200 150 125 100 0 m AS E AD Full employment AD 8.0 8.5 9.0 9.5 10.0 10.5 Real GDP (trillions of dollars per year)

Q:

What is the frequency of light that has a wavelength of 1 8 5 nm ? (c= 3 . 0 0 1 0 8 m/s)

Q:

Solve the following questions., A n s w er a ll : 32. Judy decides to take a short position in 20 contracts of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price...

Q:

Question in computer science sir solve this problem and provide me correct solution I ' m in very hurry... Question 1 Consider the following production function: y = F ( L , K ) = 4 L 1 K 1 b where L...

Q:

Question in computer science sir solve this problem and provide me correct solution I ' m in very hurry... Question 1 Consider the following production function: y = F ( L , K ) = 4 L 1 t K 1 3 where...

Q:

Computer science question don't use any AI I need solution very fast pls Question 1 Consider the following production function: y = F ( L , K ) = 4 L 1 t K 1 3 where L and K are the amount of labour...

Q:

Question in computer science sir solve this problem and provide me correct solution I ' m in very hurry... Question 1 Consider the following production function: y = F ( L , K ) = 4 L 1 t K 1 3 where...

Q:

Question in computer science sir solve this problem and provide me correct solution I ' m in very hurry... Question 1 Consider the following production function: y = F ( L , K ) = 4 L 1 t K 1 3 where...

Q:

Question in computer science sir solve this problem and provide me correct solution I ' m in very hurry... Question 1 Consider the following production function: y = F ( L , K ) = 4 L 1 t K 1 3 where...

Q:

Under what conditions does product modification work best?

Q:

Think of circumstances (industries or products) that serve as examples of when to use the following types of business segmentation.

Q:

12146. The train passes point B with a speed of 20 m>s which is decreasing at at = - 0.5 m>s2. Determine the magnitude of acceleration of the train at this point. A y y = 200 e1000 -400 m- Probs....

Q:

The inventory costing method a company chooses can affect the financial statements and thus the decisions of the people who are using those statements. Company A uses the LIFO inventory method and...

Q:

The discrete random quantity X has the following probability mass function: 1 .1 4 p(x) .2 .3 .4 1- Verify that p(x) is a valid pmf. And plot pmf graph. 2- Sketch the cumulative distribution function...

Q:

Research various planned and unplanned occurrences of information unavailability in the context of data center operations.

Q:

Describe the basic characteristics of the cash basis and the accrual basis of accounting.

Q:

Select one legal case from a current event that has taken place within the past 2 years relevant to the following objectives: Differentiate between personal, real, and intellectual property issues. ...

Q:

IL

Q:

Social Security is funded through a payroll tax that is separate from the federal income tax. It works in a way similar to the following example: For the first $1,800 in weekly earnings, the...

Q:

In many situations, we are confronted with the decision of whether to challenge someone who is currently engaged in a particular activity. In personal relationships, for instance, we decide whether...

Q:

To Tax or Not to Tax Advertising: In the text, we discussed two different views of advertisingone of which we said arises primarily from an economists perspective, the other primarily from a...

Q:

Kaizen Inc. budgeted to produce 10,000 widgets during 2010. Kaizen has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs were...

Q:

Gisenberry Company provided the following information concerning two products: Contribution margin per unit-Product 12 ............................................. $23 Contribution margin per...

Q:

Show Company had total operating expenses of $155,000 in 2012, which included Depreciation Expense of $33,000. Also during 2012, prepaid expenses decreased by $9,000 and accrued expenses increased by...