Suppose that the production function is f(x1, x2) = Cxa1 xb2, where a, b, and C are
Question:
(a) For what positive values of a, b, and C are there decreasing returns to scale? _______. Constant returns to scale? _______. Increasing returns to scale? _______.
(b) For what positive values of a, b, and C is there decreasing marginal product for factor 1?
(c) For what positive values of a, b, and C is there diminishing technical rate of substitution?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (16 reviews)
Suppose that the production function is fx 1 x 2 Cx a 1 x b 2 where a b ...View the full answer
Answered By
Tobias sifuna
I am an individual who possesses a unique set of skills and qualities that make me well-suited for content and academic writing. I have a strong writing ability, allowing me to communicate ideas and arguments in a clear, concise, and effective manner. My writing is backed by extensive research skills, enabling me to gather information from credible sources to support my arguments. I also have critical thinking skills, which allow me to analyze information, draw informed conclusions, and present my arguments in a logical and convincing manner. Additionally, I have an eye for detail and the ability to carefully proofread my work, ensuring that it is free of errors and that all sources are properly cited. Time management skills are another key strength that allow me to meet deadlines and prioritize tasks effectively. Communication skills, including the ability to collaborate with others, including editors, peer reviewers, and subject matter experts, are also important qualities that I have. I am also adaptable, capable of writing on a variety of topics and adjusting my writing style and tone to meet the needs of different audiences and projects. Lastly, I am driven by a passion for writing, which continually drives me to improve my skills and produce high-quality work.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Suppose that the production function is f(x1, x2) = (xa1 + xa2) b, where a and b are positive constants. (a) For what positive values of a and b are there decreasing returns to scale? ________....
-
Suppose that the production function for Hannah and Sam have the same production function as in Worked-Out Problem 8.2: The wage rate is $1,000 per week and a unit of capital costs $250 per week....
-
Suppose that the production function is q = L0.75 K0.25. a. What is the average product of labor, holding capital fixed at K? b. What is the marginal product of labor? c. How is the marginal product...
-
What did Frederick Taylor, the proponent of scientific management, advocate for to achieve efficiency in manufacturing?
-
A certain sample of uranium is reacted with fluorine to form a mixture of 235 UF6(g) and 238 UF 6 (g). After 100 diffusion steps, the gas contains 1526 235 UF 6 molecules per 1.000 10 5 total number...
-
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $17,000 face value that matures in one year. The current market value of the firm's assets is $19,100. The standard deviation of the...
-
Using the basic physical constants, show that \(C_{1}=3.742 \times 10^{8} \mathrm{~W} \mu \mathrm{m}^{4} / \mathrm{m}^{2}\) and \(C_{2}=\) \(1.4389 \times 10^{4} \mu \mathrm{m} / \mathrm{K}\) in the...
-
At Wolf Company, employees are entitled to one days vacation for each month worked. In January, 80 employees worked the full month. Record the vacation pay liability for January assuming the average...
-
Selling price Variable expenses Contribution margin Percent of Per Unit Sales $ 90 63 100% 70 $ 27 30% Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. Required:...
-
Mogoul Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, Product M is made in Department M. Mogouls accountant has...
-
Suppose the production function has the form F (x1, x2, x3) = Axa1 xb2xc3, Where a + b + c > 1. Prove that there are increasing returns to scale. For any t _______ = A (tx1) a (tx2) b (tx3) c = t...
-
The short-run production function of a competitive firm is given by f (L) = 6L2/3, where L is the amount of labor it uses. (For those who do not know calculusif total output is aLb, where a and b are...
-
The graphics used in Grave Raiders, a computer game, are protected by a. copyright law. b. patent law. c. trademark law. d. trade secrets law.
-
AE 433 Consider a single stage of a compressor. At the radial location r= 0.75 m, the rotor rotational speed is 2500 rpm, To = 350 K, C1z = C2 = 150 m/s, a = 35, Bz = 10, where subscripts 1and 2...
-
4. Suppose an investor forms a stock portfolio by investing $10,000 in Freeport-McMoran and $10,000 in Entergy Corp. a. What would be the portfolio's expected rate of return, standard deviation, and...
-
From the position shown, a 20-lb gear with mass center at G rolls on the stationary gear rack. If a force of P = 50 lb is applied to the handle, calculate the angular acceleration a of the gear at...
-
references should be the NIRC as amended by TRAIN and CREATE Law, and pertinent Revenue Regulations Polka Cilla is a rank and file employee in an Advertising Firm in Makati. In the year 2019, he had...
-
The six-month interest rate is 3%. The three-month rate is also 3%. What is the forward 3-month rate in three months? Be mindful of day counts. 3 points For the toolbar, press ALT+F10 (PC) or...
-
A model for the specific gravity of water S is where T is the water temperature in degrees Celsius. (a) Use the second derivative to determine the concavity of S. (b) Use a computer algebra system to...
-
14. In testing the existence assertion, an auditor ordinarily works from the a. Financial statements to the accounting records. b. General journal to the general ledger. c. Supporting evidence to the...
-
The income offer curve is to the Engel curve as the price offer curve is to. . .?
-
Miss Muffet always likes to have things just so. In fact the only way she will consume her curds and whey is in the ratio of 2 units of whey per unit of curds. She has an income of $20. Whey costs...
-
Which of the following are true? (1) Average fixed costs never increase with output. (2) Average total costs are always greater than or equal to average variable costs. (3) Average cost can never...
-
Cases that raise substantial amount of interest in the use of "advanced directives" which allow individuals to put in writing their wishes regarding incapacitation or authorizing a proxy to make...
-
You are a college senior, interning at a company that is about to celebrate its first anniversary in business and is throwing a big party for its employees, customers and suppliers. It will need 10...
-
A marketing firm is hiring 3 new employees. Their job duties entail developing new marketing plans and to appear at certain promotional events. After all the candidates are interviewed, the marketing...
Study smarter with the SolutionInn App