=) Isabella owns a manufacturing firm that produces IoT devices. Her daily production function C+5 A...
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=) Isabella owns a manufacturing firm that produces IoT devices. Her daily production function C+5 A is given by q = 108K*LY. Let X= and let Y B 20 20 i) Suppose L www 0.5D, where L is the number of workers employed each day and K = 0.25D +A, where K is the number of machines being used each day. What is Isabella's daily output? [2 mark] ii) Suppose Isabella increased both capital and labour by 29%, calculate her new output [1 mark] iii) State the Marginal Productivity of Capital, given the increase in input factors. [1 mark] iv) What is the percentage change in output as a result of the increase in input factors? [1 mark] State the type of returns to scale. If it is increasing returns to scale, state "IRS" as your answer, if it is constant returns to scale, state “CRS” as your answer and if it is decreasing returns to scale, then state "DRS" as your answer. [1 mark] =) Isabella owns a manufacturing firm that produces IoT devices. Her daily production function C+5 A is given by q = 108K*LY. Let X= and let Y B 20 20 i) Suppose L www 0.5D, where L is the number of workers employed each day and K = 0.25D +A, where K is the number of machines being used each day. What is Isabella's daily output? [2 mark] ii) Suppose Isabella increased both capital and labour by 29%, calculate her new output [1 mark] iii) State the Marginal Productivity of Capital, given the increase in input factors. [1 mark] iv) What is the percentage change in output as a result of the increase in input factors? [1 mark] State the type of returns to scale. If it is increasing returns to scale, state "IRS" as your answer, if it is constant returns to scale, state “CRS” as your answer and if it is decreasing returns to scale, then state "DRS" as your answer. [1 mark]
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