Suppose the production function of an item is Q = 3L + 2K. When the inputs are doubled in this production function, the output is also doubled. which of the following statements are true? Statement 1: Q will increase by 2 if K increases by 1, Statement 2: Q will increase by 3 if L increases by 1,
Q: Consider the following production function: Q = 2K + 5L. The price of capital is €10 per unit and…
A: As per the question ,…
Q: Consider a competitive, closed economy with a Cobb-Douglas production function with parameter α =…
A: The production function shows the relationship between the inputs and the output. In other words, it…
Q: 1. Given the production function Q = f(L,K) = KL2 – L3 , where Q is output and L and K are the labor…
A: "Since you have asked multiple question ,we will solve the first question for you.If you want any…
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: Suppose the production function is Y = f(K, AN) and the economies of scale are invariant . When will…
A: Y = f(K, AN)
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: Consider a firm who owns capital K and has the following production technology Y = zF(K, N)= 2K³N³,…
A: A production function is a mathematical equation that expresses the relationship between the number…
Q: The production function feature called "increasing returns to scale" means that if we increase…
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Suppose the production function is given by Q = 5K - 3L What is the average product of capital when…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
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: Determine the returns to scale implied by each of the production function. Q = 0.4Y1/2 +…
A: Q (Y,A,B) = 0.4Y1/2 + 0.3A1/4B1/4 + 2.0B1/2 To determine the returns to scale, we will multiply Y,…
Q: Which of the following production functions exhibit constant returns to scale? In each case y is…
A: Given: The production functions are: 1y=K12L132y=3K12L12(3)y=k12+L12(4)y=2K+3L
Q: Given the production function for labor and capital: Q = L^½(K^½), and q = 100. If the firm wants…
A: Production function:- Production function can be defined as an economic equation that represents the…
Q: Given the production function Q = min (4K, 3L), what is the average product of capital when a units…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Assuming that the production function [Y=A(K, L, N, H)] exhibits constant returns to scale we can…
A: In economics, the term "returns to scale" basically refers to the variation or change in…
Q: For the following items, consider the given production schedule. Here, the production of a good (Q)…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The equation of the production function for calculators is q = 5KL + 30L, where q is total output, K…
A: Production function is done by 4 factors , land , labor , capital and entrepreneur , so here by…
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: 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: 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: 3.1 Consider the following production function: F(K,L) = K®.3L0.7 State if this function exhibits…
A: disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…
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: Suppose the production function is given by Q(L,K)=L^1/2K^1/2 Assuming capital is fixed ,find APL…
A: Answer: Given, Production function: QL,K=L12K12 To find: APL and MPL APL (Average product of labor):…
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: Suppose that the production function q = f(L,K), shows that if L = 3 and K = 5 then q = 10. Is it…
A: Production Function 10Q = 3L+5K 10 quantities of a product is made with 3 units of labour and 5…
Q: Suppose the production function for widgets is given by: Q = KL - 0.8K² - 0.2L² where Q represents…
A: Answer: Given, Production function: Q=KL-0.8K2-0.2L2 (a). Average product of labor (APL): APL refers…
Q: Question 24 Consider the following production function when K is fixed. (This is a description of…
A: False, the production function does not satisfy the law of decreasing marginal returns to labor.
Q: Suppose the production function for widgets is given by KL – 0.5K2 – 0.1 L2 , where q represents the…
A: Given production function FK,L=q=KL-0.5K2-0.1L2 .......... (1) Where q represents the annual…
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: 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 the production function Y = K1/2 N12 a. Compute output when K = 49 and N = 81 b. If both…
A: Plugging given values, Y = (49)1/2 x (81)1/2 Y = 7 x 9 Y = 63
Q: Y=$10 trillion, K=$10 trillion, L=100 million workers Cobb-Douglas Production Function What is…
A: Production function shows the relationship between the physical output and physical inputs.…
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: In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm…
A:
Q: Suppose the production function is given by Q = 5K + 3L. What is the average product of capital when…
A: Given: The production function is: Q = 5K + 3L
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: Consider the production function q=√L+8K^(3). Starting from the input combination (3,6), does the…
A: Given information: Production function q=√L+8K3 Input combination 3,6 (L = 3 and K = 6)
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: Consider the following Cob-Douglas production function: f(k.1) = K°P°, where a 20 and > 0. 1. Show…
A: a) f(k,l) = kαlβf(nk,nl) = (nk)α(nl)β f(nk,nl) =nαkαnβlβf(nk,nl) =nα+β*(kαlβ)It is given that α>0…
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: Given the following production function Y=X+4X^2-0.2X^3. At what level of X does the Total physical…
A: Y = x + 4x2 -0.2x3 MPP=dY/dx = 1 + 8x - 0.6x2 APP = Y/x = 1 + 4x -0.2x2 (1)MPP is maximum when…
Q: In economics and econometrics, the Cobb-Douglas production function is a particular functional form…
A: "A production function expresses the technological relationship between output produced and the…
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…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Consider a production function for an economy with 2 factors of production L, K: Y=10(KL)1/2 where Y is real output, L is labour, K is capital. In this economy the factors of production are in fixed supply with L = 10, K = 10. What type of returns to scale does this production function exhibit. Demonstrate by example. If the economy is competitive what is the total income that will go to the owners of capital?uppose a Cobb-Douglas Production function is given by the following:P(L,K)=60L^0.8K^0.2where LL is units of labor, KK is units of capital, and P(L,K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $900 and each unit of capital costs $3,600. Further suppose a total of $900,000 is available to be invested in labor and capital (combined).A) How many units of labor and capital should be "purchased" to maximize production subject to your budgetary constraint?Units of labor, LL = Units of capital, KK = B) What is the maximum number of units of production under the given budgetary conditions? (Round your answer to the nearest whole unit.)Max production = unitsConsider a total of N = 62 identical firms such that firm i produces qi units of output using Li units of labour according to the production function qi = 11 Li 1/2 + Li , i = 1, ..., N. Use the method of Lagrange to derive the aggregate production function given there is a total of L units of labour to be allocated among firms. Then find and enter below the value of the Lagrangian multiplier at the optimal point assuming L = 1854. Please do fast ASAP fast
- A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much output is produced when K = 2 and L = 3? unit(s)b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 6 units of output?Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour? (Choose one that is the best answer) Capital decreases and labor increases. It does not change. Capital increases and labor decreases. Capital and labor increase.A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much output is produced when K = 2 and L = 3?unit(s)b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 6 units of output?Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour?multiple choice Capital and labor increase. Capital decreases and labor increases. Capital increases and labor decreases. It does not change.Consider a Cobb-Douglas production function, Y=zKα(Nd)1−α, with 0< α <1. (a) Show that this production function exhibits constant returns to scale. (That is, show that when K becomes xK and Nd becomes xNd, Y becomes xY for x > 0. (b) What is MPN? Is it increasing or decreasing in Nd?
- USE R LANGUAGE TO SOLVE THE equation The output of a production process, Q is given by the function2K^(-3)L^(5/2)/2K log4 6L^2where K and L denote capital and Inbour. Calculate the output when the capital and labour are 10 and 20 units, respectively.A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much output is produced when K = 2 and L = 3?unit(s)b. If the wage rate is $45 per hour and the rental rate on capital is $25 per hour, what is the cost-minimizing input mix for producing 6 units of output?Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $25 per hour but the rental rate on capital remains at $25 per hour? Capital decreases and labor increases. Capital and labor increase. It does not change. Capital increases and labor decreases. Only typed answerProduction Function. Consider the Cobb-Douglas production function discussed in class:F(K, L) = AK^1/3 L^2/3. Suppose that parameters are initially A = 1, K = 150, and L = 10. d) Suppose that the quantity of labor L doubles. Calculate Y, w, r, Y/L, and K/L. Com-ment on how and why these numbers changed relative to (c) and why they did so. E) Suppose that the quantity of capital K doubles as well. (So now both K and L aretwice their previous value). Calculate Y, w, r, Y/L, and K/L. Comment on how thesenumbers changed relative to both their initial values, and their values in (d).
- 4.3 Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale? a. q = L + K b. q = L + LaKb + KA firm can manufacture a product according to the production function Q = F(K, L) = K0.5L0.5. (a) What is the average product of labor, APL, when the level of capital is fixed at 36 units and the firm uses 16 units of labor? (b) What is the marginal product of labor, MPL, when capital is fixed at 36 units? (c) Suppose capital is fixed at 36 units. If the firm can sell its output at a price of $100 per unit of output and can hire labor at $40 per unit of labor, how many units of labor should the firm hire in order to maximize profits?Returns to scale in production: Do the following production functions exhibitincreasing, constant, or decreasing returns to scale in K and L? (Assume Ais some fxed positive number.)(a) Y = K1/2L1/2(b) Y = K2/3L2/3(c) Y = K1/3L1/2(d) Y = K + L(e) Y = K + K1/3L1/3 (f ) Y = K 1/3L2/3 + A (g) Y = K 1/3L2/3 − A
