Question: Question 11 The following production function F(K,L) = K + (1/3)L exhibits O increasing returns to scale. O constant returns to scale O decreasing returns

Question 11 The following production function F(K,L) = K + (1/3)L

Question 11 The following production function F(K,L) = K + (1/3)L exhibits O increasing returns to scale. O constant returns to scale O decreasing returns to scale. O unstable (undefined) returns to scale

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!

Part IV (5 points) Suppose a rm has the following production function: F (K, L) = AKiLt, which is the same rm in Part III, but now we analyze its cost structure in the long run. (A) Determine whether...

1.1 If there is a positive demand shock and a negative supply shock, the equilibrium quantity will: A. The answer cannot be determined B. Decrease C. Increase D. Remain the same 1.2 The absolute...

Kindly solve these for me 4. (5 points) Consider the utility function u(x, y) = 10 In(x) + y. (a) Let px = 10 denote the price of x, let py = 1 denote the price of y and let / = 100 denote the...

A= 7 and B= 8 For the following production function: y = K L" a. Show whether the function exhibits constant, increasing or decreasing returns to scale for different parameter values (of o). b....

HeHi Help 1. Assume that the market for steel 1s competitive. The inverse demand curve for steel 13 P 12ll- Q and its inverse supply (i. e. ,industry marginal cost) curve is P: Q + 20, where P is...

Question 1 (total 15 points}. A rm has a production function: f (K . L} = EDLKD'E + LEE 2 LEKE a. What is its short-run production function if capital is xed at K=4'? b. What are the fum's marginal...

Let X be a random variable representing the present value of the benefits of a whole of life assurance, and Y be a random variable representing the present value of the benefits of a temporary...

The following production function F(L, K) - -, exhibits: a. Increasing MPL, increasing MPK and increasing returns to scale b. decreasing MPL, decreasing MPK and decreasing returns to scale c....

1. Suppose a firm has the following production function = ^2*^2 . Calculate returns to scale. Does it have increasing, decreasing, or constant returns to scale? 2. Suppose a firm has following total...

Chapter 1 Refresher on technology and firms I.1 Short questions (answering requires only a few well chosen sentences and possibly a simple illustration) a) Consider an economy where all firms'...

Range Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2014.

In Exercise 71, what are the relative velocities if the ball is thrown in the direction of the truck? In exercise A person riding in the back of a pickup truck traveling at 70 km/h on a straight,...

Evaluate the definite integral exactly. 9 1 ( t ) ( 9 + t ) dt

Determine whether the following transactions are taxable. If a transaction is not taxable, indicate what type of reorganization is effected, if any. a. Alpha Corporation owns assets valued at...

During the week, the Spartan Restaurant Group's French fry manufacturing facility incurred 1,500 hours of direct labor. Direct laborers were paid $12.20 per hour. The standard hourly labor rate is...

Explain how the role of management accounting has changed over the last 100 years.

Explain how the role of management accounting has changed over the last 100 years

The local grocery store expects that customers will use credit cards to pay for a total of 90,000 sales transactions during the month of April. These transactions are expected to amount to $1,000,000...

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

The personal characteristics of the sender

The quality of the argumentation

The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.