Suppose the production function has the form F (x1, x2, x3) = Axa1 xb2xc3, Where a +
Question:
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 a+b+c f (x1, x2, x3) > tf (x1, x2, x3).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
Suppose the production function has the form F x 1 ...View the full answer
Answered By
Chiranjib Thakur
I have no tutoring experience yet, but I can share my skills and knowledge gained from my education and work experiences. I have been a CPA since 2012 with 6 years of work experience in internal auditing and 4 years of work experience in accounting at the supervisory level.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Suppose the production function is Cobb-Douglas and f(x1, x2) = x1/2 1 x3/2 2. (a) Write an expression for the marginal product of x1 at the point (x1, x2). 1 /2x11/2 x 3/22. (b) The marginal product...
-
Suppose the production function at the core of our model is given by Y = K3/4L1/4 (that is, assume the exponents on capital and labor are 3/4 and 1/4 rather than 1/3 and 2/3). (a) Create a new...
-
Suppose the production function is given by the equation Q = LK. Graph the isoquants corresponding to Q = 10, Q = 20, and Q = 50. Do these isoquants exhibit diminishing marginal rate of technical...
-
What is the purpose of using case and case type in the process identification stage?
-
Consider separate 1.0-L samples of O 2 (g) and He(g), both at 25 C and the same pressure. Compare the change in momentum per impact and the number of impacts per second in the two samples.
-
A ball rolls off a table and falls 0.75 m to the floor, landing with a speed of 4.0 m/s. (a) What is the acceleration of the ball just before it strikes the ground? (b) What was the initial speed of...
-
In a random sample of 50 electrodes, the mean diameter was \(0.4 \mathrm{~cm}\), and the standard deviation was \(0.005 \mathrm{~cm}\). (a) Between what limits can it be said with \(99 \%\)...
-
Part I: Merry- Go- Round (MGR), a clothing retailer located primarily in shopping malls, was founded in 1968.10 By the early 1990s, the company had gone public and had expanded to approximately 1,500...
-
A positively charged particle Q 1 = + 4 5 nC is held at fixed position. A second charge Q 2 of mass m = 3 . 5 mu g is located a distance d = 3 5 cm directly above charge Q 1 . The net force on Q 2 is...
-
Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of zero to 100% in increments of 20%. A pension fund manager is considering...
-
A firm has the production function f(x, y) = min {2x, x + y}. On the graph below, use red ink to sketch a couple of production isoquants for this firm. A second firm has the production function f(x,...
-
Suppose that the production function is f(x1, x2) = Cxa1 xb2, where a, b, and C are positive constants. (a) For what positive values of a, b, and C are there decreasing returns to scale? _______....
-
Consider the following payoff diagram. Find a combination of calls, puts, risk-free bonds, and stock that has this payoff. (You need not use all of these instruments, and there are many possible...
-
Hj = 25.4 Choose between Q2 and Q3 Q2. (6 grades) The cast Iron pipes AM, MB, and MC have the diameters and lengths indicated. Given that, the head at the junction M is H; (m) below the surface of...
-
in finance, searching for factors affecting stock performance is very important and potentially lucrative.An analyst decides to compare a first sample of companies with low earnings per share (EPS)...
-
Kyle is still trying to raise $5,000,000 for his new project, and he has decided that he will issue additional common stock for the necessary funds. The current price of his companys common stock is...
-
Terry has a costume shop in a commercial building. He has a one-year lease that automatically renews for another year unless either Terry or the landlord terminates. What type of leasehold estate is...
-
Requirements 1. What is the actual cost per gram of the special alloy that Collegiate Rings purchased last month? 2. What is the direct material price variance? 3. What is the direct material...
-
Find a power series for the function, centered at c, and determine the interval of convergence. g(x) || 5 2x - 3' c = -3
-
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
-
If a consumer has a utility function u(x 1 , x 2 ) = x 1 x 2 4 , what fraction of her income will she spend on good 2?
-
For what kind of preferences will the consumer be just as well-off facing a quantity tax as an income tax?
-
If a firm uses n inputs (n > 2), what inequality does the theory of revealed cost minimization imply about changes in factor prices (w i ) and the changes in factor demands (x i ) for a given level...
-
How do you prioritize features and attributes when designing a new product or service? What steps should be taken to ensure that the design process aligns with the organization's overall strategy and...
-
Information that does not have an adjustment reason code to route payments into the correct bank accounts to relay about patient benefit coverage to indicate the amount being paid and the date of...
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
Study smarter with the SolutionInn App