Consider the case of three inputs to produce a product. The function is given as f(aX 25, aX.5, aX 25) < af(X.25, X9.5, X9.25) for all a > 1. What type of returns to scale is this? Select one: O a. None of the above b. Constant returns to scale O c. Decreasing returns to scale O d. Increasing returns to scale

Consider the case of three inputs to produce a product. The function is given as f(aX 25, aX.5, aX 25) < af(X.25, X9.5, X9.25) for all a > 1. What type of returns to scale is this? Select one: O a. None of the above b. Constant returns to scale O c. Decreasing returns to scale O d. Increasing returns to scale

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

See similar textbooks

Similar questions

which of the following production functions is an increasing, decreasing or consistent return to scale please show your work a. y=L^0.3K^0.5 b. y= LK^0.5 c. y= L + K
3. Many production functions have a property called constant returns to scale, about constant returns to scale，which of the following is WRONG? A. This property implies that as all inputs are doubled, output will exactly double. B. This implies that must be true C.This also means that if we want to examine output per worker we could set x = 1/L and we would get D. None of the above is true
For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale b.Decreasing Returns to Scale c.Increasing Returns to Scale d.Zero Return to Scale
What are the functions for MC and AC if TC = 100q + 100q2? Are the returns to scale increasing, decreasing, or constant?
Q)solve it correctly The marginal products of capital (MPK) and labor (MPL) are, respectively, MPK = 2000 units; MPL = 1500 units. The input prices are: PK = $10/unit; and PL = $150/unit. To minimize production costs, the firm should A. increase both capital and labor B. decrease both capital and labor C. increase capital; decrease labor D. decrease capital; increase labor E. do nothing; costs are minimized
Do the following functions exhibitnincreasing, decreasing or constant returns to scale. Ensure to explain your answer Q=(5L+5K)^0.5 Q=(2L+2K)^0.5 Q=4L^1/2+4K
The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale? a.Increasing Returns to Scale b.Constant Returns to Scale c.Decreasing Returns to Scale
Determine the returns to scale implied by each of the production function. Q = 0.4Y1/2 + 0.3A1/4B1/4 + 2.0B1/2 Group of answer choices Decreasing returns to scale. Constant returns to scale. Negative returns to scale. Exponential returns to scale. Inreasing returns to scale.
Economic 1. For each of the following production functions, determine whether there areincreasing, constant or decreasing returns to scale.a) . Q = 3K + 4Lb) . Q = K + L + KLc) . Q = 18K^ 0.6 L^0.3
A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does this production function feature? Show work. (b) Does this production function exhibit downward-sloping and convex isoquants? Explain.
Your firm is producing a unique product and the marginal product with respect to x1 in your function αf(x1,x2) exhibits a decreasing marginal product trend. Is it possible for the output of this function to have increasing returns to scale? Select one: a. Yes b. No