Answered: Country A and Country B both have the…

Country A and Country B both have the production function: Y = F(K,L) = K^(1/3)L^(2/3). a) Does this production function have constant returns to scale? Explain.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.5: Production And Costs In The Long Run

Problem 2ST

See similar textbooks

Related questions

Q: Which of the following describes increasing returns to scale? A. Long Run Average Total Costs…

A: The total cost of production refers to the monetary value of inputs used in the production of goods…

Q: Is it possible to increase the labor productivity (output per unit of labor) in a given production…

A: Labor is said to be productive when the output per unit labor increases overtime. Diminishing…

Q: Consider the following production function: Q 3K + 6L where K represents Capital, L represents…

A: Since you have posted multiple question, as per answering guideline, we will solve first question…

Q: Suppose that output q is a function of a single input, labour (L). Describe the returns to scale…

A: amazon work space client google download and install zoom meeting install okta in phone The…

Q: Suppose that a firm has the following production function Q(K,L) = AKL² – BL³ where K represents…

A: We are going to answer the question by calculating marginal product of labor using differentiation…

Q: Consider the C -Douglas production function q a. Find the RTS and show that it is decreasing in l.…

A: here we can determine the given equations as follow

Q: ) An increase in the number of hours worked would a. shift the production function downward. b.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: a) Distinguish between Cobb Douglas production function and Classical production function

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: Assuming a Cobb-Douglas production function with constant returns to scale then, as K rises with L…

A: Cobb-Douglas is a specific functional form of the production function, generally used to represent…

Q: Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output,…

A: Ans. The output elasticity of labour is the ratio of percentage change in total output and…

Q: O LounchPad • Country A and country B both have the production function Y = F(K, L) = K/³L?/3. %3D…

A: A production function has constant return to scale if the inputs and the outputs change by the…

Q: In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm…

A: The production function explains the relationship between the inputs and the resulted output. It…

Q: Some economists believe that the US. economy as a whole can be modeled with the following production…

A: As we know that Cobb-Douglas production function models represents the relationship among production…

Q: True or False? This marginal cost function is the derivative of the production function.

A: We have, Cw1,w2,y=w113+w2133y2 The marginal cost MC = Cyw,y It means the C(w1,w2,y) function is…

Q: The production function is the relationship between the maximum amount of output that can be…

A: A production function represents how firm transforms inputs into outputs.

Q: Question 1: Consider the long-run production function for the country ABC y = 2k ^ 0.67, y is the…

A: Total Factor Productivity (TFP) or productivity is a key notion in the context of a country's…

Q: Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. (…

A: A production function is a functional relationship between the inputs which are used in the process…

Q: Question 5.05 For the production function Q = 4LK, returns to scale: Select one: O Is decreasing.…

A: Production function shows relationship between output and inputs used.

Q: A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does…

Q: Use the diagram of production function to explain why variable costs increases at a decreasing rate…

A: Cost are of production two types: Variable cost and the Fixed cost. Variable cost is the cost that…

Q: Consider the following production function: Q = 2K + 6L where K represents Capital, L represents…

A: The linear production shows inputs are perfect substitutes, meaning only one of them is used.

Q: The graph below represents per-worker production functions for the same country. Answer the…

A: a) Law of marginal diminishing: .The flatter slope of the production function movement from B to C…

Q: If the production function is Q = 30 + 22L + 44K, what’s the most you can produce with 9 workers (L)…

A: Production function is the explanation of procedure used in producing the goods and services in the…

Q: Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output,…

A: A simple linear equation is also known first degree equation. These equations will have a homogenous…

Q: hen a production function exhibits constant returns to scale, it means that: A. a proportional…

A: Constant returns to scale production function means that the production function is…

Q: Consider a short run production function q=7L+K using L units of labour and K units of capital.…

A: Consider a short-run production function q=7L+K using L units of labour and K units of capital. 1)…

Q: Consider a short run production function q=cL+k where the value for c is 4, using L units of…

A: Returns to scale exhibits increase in proportionate output when there is change in all variable…

Q: Given: Y = 20(L.5K.4N.1) L is labor K is capital N is land L = 100 K = 100 N = 100 Does this…

A: Given data. Y = 20(L.5K.4N.1

Q: Which of the following production functions do not exhibit constant returns to scale? A. F(K, L)= AK…

A: Introduction Returns to scale refers to the how much output changes given a proportional change in…

Q: The production function for soy beans is q = K 0.25 L 0.45. Dose this production function have…

A: Given Production function. q = (K)^0.25 × (L)^0.45

Q: Find the marginal product of capital for the following production function and show if it has…

A: Returns to scale explain how production evolves over time in response to an increase in all inputs.…

Q: Suppose the production function of an item is Q = 3L + 2K. When the inputs are doubled in this…

Q: a. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the…

A: The three criteria can be explained as: The convex shape isoquant- The nature of the production…

Q: A firm that employs labor and capital has production function q = LK. What returns to scale does the…

A: Q=LK the above production function exhibits q=lk where, Q= quantity of output L= Amount of labor K=…

Q: Consider the production function Y = z.F(K,L, A) where Y is output, z is technology, K is capital, L…

A: We are going to understand various return to scale production function to answer this question.

Q: Given the labor force, either more capital or better technology will shift the production function…

A: The production-function informs us of all the possible quantities of outcomes from different…

Q: You are given the production function: Q(K,L)=10KαLβ Does the above function exhibit increasing,…

A: The since long run alludes to a time-frame where the production function is characterized based on…

Q: Determine whether the following statements are TRUE or FALSE. Explain your answer using graphs or…

A: Answer c) A constant return to scale is when an increase in input results in a proportional increase…

Q: Q = A Lx Ky (Quantity, A, Labor, Capital) If A; X; Y are all positive numbers, does the…

A: The production function exhibits Increasing return to scale, Constant return to scale or Decreasing…

Q: When do you think production is on the part of increasing returns on the production function?…

A: Returns to scale is an economic term that defines what happens to long-run returns as production…

Q: In each blank type increasing, decreasing or constant to describe the returns to scale of the given…

A: Production function is said to have constant returns to scale when increasing the inputs by some…

Q: pital each increase by 8% and output also increases by 3%. The production function exhibits_ returns…

A: Production function shows the relationship between the input and output.

Q: What is the effect of diminishing returns to labor on the slope of the aggregate production function…

A: Option (A) is correct answer It implies that the slope of the curve decreases as the number of…

Q: Explain Linearly Homogeneous production function with the numerical example.

Q: Consider the following production function: Q = 3K + 6L where K is Capital, L is Labour and Q…

A: Given production function Q=3K+6L Where K is capital and L is labor

Q: QUESTION 8 Consider the production function F(A,K) = A*In(K), where A = 3 is a constant. What is the…

Question

Country A and Country B both have the production function:
Y = F(K,L) = K^(1/3)L^(2/3).
a) Does this production function have constant returms to scale? Explain.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose the production function is Y = f(K, AN) and the economies of scale are invariant . When will output increase by 7% at a given skill level ? Please choose one. N and A increase by 7% each . K and AN increase by 7% each . N or A increases by 7% . Increases K or AN by 7%
Given the labor force, either more capital or better technology will shift the production function downward. True False
Y=$10 trillion, K=$10 trillion, L=100 million workers Cobb-Douglas Production Function What is the production function ؟؟؟
Assuming that the production function [Y=A(K, L, N, H)] exhibits constant returns to scale we can derive productivity in the following way A.) Y/L = A(K, 1, H, N) B.) Y/L = A(K/L, 1, H/L, N/L) C.) Y/L = AK, AL, AH, AN D.) Y/L = C+I=G=NX
Q = A Lx Ky (Quantity, A, Labor, Capital) If A; X; Y are all positive numbers, does the production function exhibit Increasing return to scale, Constant return to scale or Decreasing return to scale?
Explain Expansion path and the form of the Production Function.
Suppose you are given the aggregate production function for an economy and the amount of available technology increases for this economy. If labor and capital constant are held constant, increase in technology will causes labor productivity to decrease. True False
Using the production function Real GDP = T (L, K), define the term production function and describe what each of the variables (T, L, and K) represents. When graphed with Real GDP on the vertical axis and labor on the horizontal axis, which variable(s) can shift the production function and which variable(s) can cause a movement along the production function?
A positive technological change will Group of answer choices shift the per-worker production function down. move the economy along a given per-worker production function to the left. shift the per-worker production function up. move the economy along a given per-worker production function to the right.
True or False A production function in "economics" summarizes the technological relationship between inputs and outputs.
Which would shift the production function upward? Group of answer choices An increase in the price of oil. a decrease in the supply of labor. an improvement in technology. a decline in birth rates.
You are given the production function: Q(K,L)=10KαLβ Does the above function exhibit increasing, decreasing or constant return to scale? Illustrate why and explain what this means.