Q2. Given a production function Q =f (K, L) = K+ 2L, both capital and labour are doubled, does this production function display increasing, decreasing or constant returns to scale? Show the complete working and explain what returns to scale is noticed.

Q: Margeʹs Hair Salon production function is Q = f(K, L) = K0.5L0.5 where K is the number of hair…

A: As given Production function is Q = K0.5L0.5 Return to scale of production function is determined by…

Q: With the Cobb-Douglas production function Y=zK1/4nd374, if both capital and labour increase by 20%,…

A: Answer: Given, Production function: Y=zK14Nd34 Increase in both capital and labor = 20% Value of K…

Q: An industry can be characterized by the following production function: Q= 2.5L 60 C-40 (a) What is…

A: Q = 2.5 L .60 C .40

Q: For a short run production function q=10lnL if L=2 the extra labor needed to increase output by one…

A: The production function is distinctively characterized inside the short run and over the lengthy…

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: For the production function Q = 0.7L + K, returns to scale: a. Can be increasing, decreasing, or…

A: A production function q=f(L,K) is in constant return to scale if q'=f(λL,λK)=λf(L,K)=λq

Q: Provide a graph and an explanation to show that the production function Q = L.5K.5 has diminishing…

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

Q: Q47 In the long run, the law of diminishing marginal returns... a. Sometimes holds, depending on…

A: Option E Law of diminishing marginal returns shows that when an additional unit of production is…

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: Explain the three types of returns to scale with Cobb-Douglas production function.

A:

Q: The equation below is a production function,   Q = (200)L + (100)K – (0.2)L2 – (0.1)K2     , where…

A: Q = (200)L + (100)K – (0.2)L2 – (0.1)K2

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: 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: Explain each of the following: constant returns to scale;  decreasing returns to capital; and…

A: The term "returns to scale" in economics describes the speed at which a change in output causes a…

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: The equation below is a production function,   Q = (200)L + (100)K – (0.2)L2 – (0.1)K2     , where…

A: Production function, Q = 200L + 100K – 0.2L2 – 0.1K2To find the marginal productivity of labor…

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: 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: Given the production function, the portion of the total product curve,  which is concave upward…

A: In an economyz production possibility curve shoes the trade-off between two products to be produced…

Q: If we duplicate all the production factors of the production function f (L,K) = L 2/3. K1/3, where L…

A: Given  Production function f(L,K)=L2/3K1/3         ......(1)

Q: y = F(L,K) = min(L,3K) Show if the leontie

A: Here, we have to find constant returns to scale.

Q: The equation below is a production function,Q = (200)L + (100)K – (0.2)L2 – (0.1)K2     , where Q is…

A: Q = (200)L + (100)K – (0.2)L2 – (0.1)K2

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: If the production function is f(x1,x2) = x1,x2. a. Show whether this production function exhibits…

A: a.  The production function is f(x1,x2) = x1.x2 f(x1,x2) = x1.x2f(λx1,λx2) = λx1 λx2f(λx1,λx2)…

Q: The production function Q=KOLP where 0 ≤ a, ß≤ 1 is called a Cobb - Douglas production function.…

A: When we increase the all factors of production in a given proportion (t), then the resulting output…

Q: Suppose a firm has a Cobb Douglas production function and is initially producing 50 units of output…

A: The Cobb-Douglas production function formula for a single good with two factors of production is…

Q: Given the linear production function: Log (Q) = Log (0.5) + Log (L) + Log (K) Where Q is the level…

A: Part a) Log (xy) = log (x) + log (y) Log (Q) = Log (0.5) + Log (L) + Log (K)  Log (Q) = log ( (0.5)(…

Q: Consider a production function Q = (K.5 + L.5) 2    Does this production function exhibit…

A: Q=(K0.5+L0.5)2..... (1)Now, In order to check for returns to scale, multiply the variables K and L…

Q: Assume the following production function for maize: Q=3K^1.2 L^0.5, where Q is the number of bags of…

A: We are going to find MRTS, factor intensity and returns to scale to answer this question.

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…

A:

Q: For the production function Q = 0.2L2  returns to scale is: a.Constant Returns to Scale…

A: Returns to scale exhibits what happen to scale of production in long run when its factor of…

Q: Question A: Determine the production function (TP) and the marginal production function (MP)…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Please only answer d Consider the following Cobb-Douglas production function: Y = 10 L^0.4 K^0.4.…

A: Answer - Need to find- Effect on the total costs when wage increase from 20 to 30    Given wage Bill…

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: The simple (and silly) production function q = K/2 L-/2 (where q is output produced, and K and L +…

A: a production function gives the technological relation between quantities of physical inputs and…

Q: Discuss the content of the concepts of "short run" and "long run" as used in the theory of firm and…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose that a production function for labor (L) and capital (K) is given by: q(L,K) = L K0.2  .…

A: q(L,K) = L K0.2   To find if it is increase, constant or decreasing returns to scale multiply both…

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: Show that the following production function has constant returns to scale. It can be through a…

A: Given  Production function  y=5x11/2x21/2 We have to show that production function has constant…

Q: Suppose the production function for T-shirts can be represented as q =  L0.25 K0.75. Show that the…

A: Meaning of Production Function: The term production function refers to the situation under which a…

Q: Which situation below describes the increasing returns stage of the production function? a. Hiring…

A: Increasing returns to scale is a situation when the fixed factors are abundant compared to the…

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

A:

Q: Consider a short run production function q=5L+K, using L units of labour and K units of capital.…

A: Production function is a function which shows the relationship between the output and the number of…

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