i need urgent i will 10 upvotes This problem is based on the material in the chapter appendix. Suppose that the economy's production function is given byY=KN¹-awhere Y is output, K is capital, and N is labor. Assume that a = 1/3.This production function is characterized byOA. constant returns to scale, because doubling inputs will double output.OB. increasing returns to scale, because doubling inputs will more than double output.OC. decreasing returns to scale, because doubling inputs will less than double output.OD. none of the above.Decreasing returns occur for the variablesOA. capital and labor.B. output and technology.OC. labor and output.OD. capital and output.

Returns to scale refers to the impact of increasing the scale or size of production on the resulting…

This problem is based on the material in the chapter appendix. Suppose that the economy's production function is given by Y=K²N¹-a where Y is output, K is capital, and N is labor. Assume that a = 1/3. This production function is characterized by OA. constant returns to scale, because doubling inputs will double output

This problem is based on the material in the chapter appendix. Suppose that the economy's production function is given by Y=K²N¹-a where Y is output, K is capital, and N is labor. Assume that a = 1/3. This production function is characterized by OA. constant returns to scale, because doubling inputs will double output

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

See similar textbooks

Similar questions

What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Which of the following production functions exhibit constant returns to scale? In each case y is output and K and L are inputs. (1) y = K 1/2 L 1/3 (2) y = 3 K 1/2 L 1/2 (3) y = K 1/2 + L 1/2 (4) y = 2 K + 3 L. O 1, 3, and 4 O 1, 2, and 4 2 and 4 2, 3, and 4 2 and 3
Which of the following production functions exhibit decreasing returns to scale? In each case y is output and K and L are inputs. Select one: O a. y= 3K1/2L1/2 O b. y=2K+ 3L. Oc y=K12L2/3 O d. y=K0.5L0.25
1. Assume that a firm has the following production function: q = L0.5K0.6 a. Calculate output when L = 64 K = 32. b. What returns to scale does this production function exhibit? c. Calculate output if technology utilized by the firm increases by 25%. d. Determine, both, the marginal product of labour and capital functions (ignore c.). e. Calculate, both, the marginal product of labour and capital when L = 64, K = 32 and interpret your answers. f. Calculate the marginal rate of technical substitution when L = 64, K = 32 and interpret your answer.
Assume a Cobb-Douglas production function of the form: 3 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal This production function exhibits q=10L0.28K0.59 (Enter a numeric response using a real number rounded to two decimal places.) OA. increasing returns to scale. OB. constant returns to scale. OC. initially decreasing but then constant returns to scale. O D. decreasing returns to scale. O E. initially constant but then decreasing returns to scale.
1. Suppose the production function is Q = 8L + 15K where Q is the quantity of output, L is the quantity of labor used in production, and K is the quantity of capital used in production. What can be said about this production function? It has Decreasing Returns to Scale It has Constant Returns to Scale It has Increasing Returns to Scale There isn’t enough information to determine the Returns to Scale for this production function 2. You’re dreaming of what to do during a nice summer day. You could mow the lawn which you would pay someone $15 to do for you. You could go for a walk which you value at $11. You could also take a nap and ignore everyone and everything else which you would pay $29 to do. If you to take a nap, what is your opportunity cost? Group of answer choices $29 $26 $15 $11
Give only typing answer with explanation and conclusion Consider a production function with two inputs: f(x1,x2) = (x1)a(x2)b Suppose that a = 0.7 and b = 0.7. What type of returns to scale does this production function exhibit? Type 1 for increasing, 0 for constant, and -1 for decreasing.
In each blank type increasing, decreasing or constant to describe the returns to scale of the given production function. 1 a. The production function Q 3 = 3L°K exhibits returns to scale. b. The production function Q = LK? exhibits c. The production function Q = 3L +K exhibits returns to scale. %3D returns to scale.
Assume a Cobb-Douglas production function of the form: q = 10L0 58K0.79 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal (Enter a numeric response using a real number rounded to two decimal places) This production function exhibits O A. initially constant but then increasing returns to scale. B. initially increasing but then constant returns to scale. OC. constant returns to scale. OD. increasing returns to scale. O E. decreasing returns to scale.