Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 3, Problem 2RQ
To determine
Economic interpretation of properties of production function is to be determined.
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An increase in the number of hours worked would
shift the production function upward
shift the production function downward
shift the production function outward
not shift the production function
Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure meals; the graph of the production function is a line that intersects the vertical axis at a positive amount; this graph is a line with positive slope and passes through the point (4,300)).
Can we say that the production function satisfies the law of decreasing marginal returns of labor?True False
Which of the following statements best describes a production function?
Group of answer choices
all levels of inputs that could produce a given level of output
the maximum profit generated from given levels of inputs
the maximum level of output generated from given levels of inputs
all levels of output that can be generated from given levels of inputs
Chapter 3 Solutions
Macroeconomics
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 1NPCh. 3 - Prob. 2NPCh. 3 - Prob. 3NPCh. 3 - Prob. 4NPCh. 3 - Prob. 5NPCh. 3 - Prob. 6NPCh. 3 - Prob. 7NPCh. 3 - Prob. 8NPCh. 3 - Prob. 9NPCh. 3 - Prob. 10NPCh. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 6APCh. 3 - Prob. 7AP
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- True or False A production function in "economics" summarizes the technological relationship between inputs and outputs.arrow_forwardUse the Cobb-Douglas production function to show that when the number of units of labor and the number of units of capital are doubled, the production level is also doubled.arrow_forwardAssuming a Cobb-Douglas production function with constant returns to scale, then, as L rises with K and A constant, it will be the case that: a. Both the marginal product of labour and the marginal product of capital will fall b. The marginal product of labour will fall and the marginal product of capital will rise c. Both the marginal product of labour and the marginal product of capital will rise d. The marginal product of labour will rise and the marginal product of capital will fallarrow_forward
- When do you think production is on the part of increasing returns on the production function? Explain.arrow_forwardFor each of the production functions below, find the marginal products of both inputs, and indicate(i) whether the production function exhibits increasing, constant or decreasing returns to scale, and(ii) whether the marginal product of each input is diminishing, constant or increasing in that input. Please see the atached photo for more detailsarrow_forwardPlease refer to the table attached. The number of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, consider the following production function identifying the relationship between output and labor input. You may assume that capital is fixed at 10 units. Answer all of the question. Calculate APL and MPL. Graph APL and MPL. Do they have the expected shape? On your graph, identify the three stages of production.arrow_forward
- Given the labor force, either more capital or better technology will shift the production function downward. True Falsearrow_forwardY=$10 trillion, K=$10 trillion, L=100 million workers Cobb-Douglas Production Function What is the production function ؟؟؟arrow_forwardThe ______ production function is a function that shows the relationship between the quantity of output and the quantity of one variable input given other variable inputs and fixed inputs. Group of answer choices Very short run Short Run Permanent Long Runarrow_forward
- Consider a Production Function given by the form z=F(K,L)=(K^(0.3) + L^(0.7) )^2 where K is the amount of capital and L is the amount of labor. Further, we assume that K>0 and L>0. Take the first order partial derivative of the production function with respect to capital and labor. What does the first order partial derivative imply? (Hint: Remember the definitions of the variables)arrow_forwardDraw a graph showing a set of isoquants that depict capital and labor to be perfect complements (not substitutable at all) in a production function that exhibits constant returns to scale. Be sure to label the input and output levels on the isoquants.arrow_forward
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