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- With the help of TPP ‘s derivates show that production function is maximumUsing the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as: Q= K0.45 L0.55 Where Q = units of output; L = units of Labor; and K = units of capital What are the marginal products of Labor and Capital? Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale? Explain three significance of returns to scale in Managerial decision makingUsing the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as: Q= K0.45 L0.55 Where Q = units of output; L = units of Labor; and K = units of capital What are the marginal products of Labor and Capital? Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale?
- Consider the production function: Q = 2K + 3L. The MRTSLK is:When estimating a short-run production function of the form Q = AL3 + BL2, it is necessary to specify in the computer routine that A< 0. B> 0. the intercept term is forced to equal zero. a and b all of the aboveList out the major factors of production (input factors used) in a cement factory.
- The difference between ATC and AVC decreases with decrease in level of output.Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:Rail Tours, Inc., sells packaged tours on rail lines, including gourmet meals and a reserved bed. The most popular tours are in the autumn, when foliage colors are at their peak. The overnight package for Saturday and Sunday morning are especially heavily booked. A market survey firm has just completed a study in which they conclude that if the package cost is $200 per couple, then Rail Tours can expect to sell 400 spaces on a typical Saturday. If the price is raised to $225, then unit sales will drop to 390. If the price is raised further to $250, unit sales drop to 380. a) From the data given, write down the demand equation and determine its intercepts. Are there any precautions needed when operating at the extreme ends of the demand curve?b) The survey firm also reports that if per capita income changes, Rail Tours can expect a large change in bookings. In particular, if per capita income falls by 1%, then bookings will tend to fall by about 2%. Are tour packages a normal good?…
- A Cobb-Douglass production function is estimated as logQ = 2 + 0.52logK + 0.46logL. The interpretation ofthe coefficient 0.52 is thata. 1 unit increase in K will lead to 0.52 units increase in Q.b. 1% increase in K will lead to 52% increase in Q.c. 0.52% increase in K will lead to 1% increase in Q.d. 1% increase in K will lead to 0.52% increase in Q.production function 10Q = 1600L-4,800, where L is hired labour hours. If the wage rate that laborers receive is $10/hour, what is the cost function?The cumulative learning curve coefficient CLCC(20, 0.8) is defined as follows:a. the cost to produce 20 units in a process with c(1) = 1 and a learning rate of 0.8.b. the cost to produce one unit in a process with c(1) = 20 and a learning rate of 0.8.c. the cost to produce one unit in a process with c(1) = 1 and a learning rate of 0.820.d. the cost to produce the 20th unit in a process with c(1) = 1 and a learning rateof 0.8.
