Question: GIVEN: X = 2 1 K 2 + L Y = 2 0 K L a. Show and discuss which exhibits diminishing marginal productivity labor

GIVEN:

X=21K2+L

Y=20KL

a. Show and discuss which exhibits diminishing marginal productivity labor and capital;

b. How about diminishing MRTSLK?

c. If capital and labor are doubled, please solve for returns of scale of X and Y. Please explain the results.

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 Economics Questions!

Q:

The file TRAFFIC2.RAW contains 108 monthly observations on automobile accidents, traffic laws, and some other variables for California from January 1981 through December 1989. Use this data set to...

Q:

PLZ PLZ HELP Consider the following aggregate production function (Y) for economy X, which exhibits constant returns to scale and diminishing marginal productivity of capital (K) and effective labour...

Q:

Change in capital per effective worker is written as: K K . L - (g+8 +1) A - L A -L where & is the depreciation rate, g is the 'technological progress' rate, and n is population growth rate.Consider...

Q:

The economy is populated by 100 agents. Each agent has to divide I unit of time between work and leisure given the wage rate w paid on the labor market. In addition to the salary, each agent also...

Q:

Please help AutoSave ON BE ABC svu ExcelProject 3 - Last Modified: November 5 Home Insert Draw Page Layout Formulas Data Review View Developer Tell me Share 0 Comments X Cambria Insert v 10 . = = ab...

Q:

#9-13 please Word File Edit * 72% [4] Tue 7:07 PM Q E View Insert Format Tools SUS : AutoSave OFF Home Insert Draw Design Layout References Table Window Help YO19 Excel Cho PS1 Scheduling Employees...

Q:

************** Please help if you could somehow do this i will definitely rate, Thank you ****************** Hampton Machine Tool Company The questions for the Hampton Machine Tool Company are given...

Q:

The spreadsheet can be found on moodle entitled ExcelAssignmentTFB. The spreadsheet details information relating to orders for products of a company. Open the spreadsheet ExcelAssignmentTFB on the...

Q:

---- ALL ANSWERS MUST BE WRITTEN IN EXCEL FORMULAS. A1 face TABLE 2 B D E F G H I J K L M N O P 0 1 TABLE 2 Present Value of $1 2 3 periods 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50%...

Q:

On January 1, 2021, you will start your career as a civil engineer. Your financial advisor has recommended saving for retirement to ensure you have enough to live large and to leverage the time value...

Q:

File Home Insert Draw Page Layout Formulas Data Review View Help Share Comments Calibri 10 AA == Wrap Text General 14 DZ Normal Bad Good Neutral DI Yx NT AY X Cut Lo Copy Format Painter > Paste F IN...

Q:

Let A be a 2 Ã 2 matrix. If A commutes with show that For some a and c. [00]

Q:

For each of the following situations, identify whether the change (or correction) should be made prospectively or retrospectively. Change (or correction) to be Made (a) (b) (c) (d) When the company...

Q:

Inventory is not part of the liquid assets because it is mostly physical in nature. Question 3 options: TrueFalse

Q:

January 2010 Gant Green Company Days 53.000.000 for a act of land with two building on it. plans to demolish Building and build a new store is place. Building 2 will be company office, od 2.000 use...

Q:

LO3.4 Relate how supply and demand interact to determine market equilibrium.

Q:

LO3.7 (Appendix) Illustrate how supply and demand analysis can provide insights on actualeconomy situations.

Q:

13. last word What explains why millions of economic resources tend to get arranged logically and productively rather than haphazardly and unproductively?