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Determine the level of homogeneity and returns to scale for each of the following production
function:
Q= 0.9K0.2L0.6
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- Determine the returns to scale for the following production functions. a) ? = K + 7L b) ? = KL3Which of the following production functions exhibits constant returns to scale (refer to activities and slides ): Group of answer choices q = AL0.5K0.6 q = AL0.3K0.4 q = AL0.5K0.7 Q = 10 L0.3 K0.7100VKL, where q is 4. The production function for puffed rice is given by q = the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour. (a) Calculate the q = 1,000 isoquant for this production function and show it on a graph. (b) If K = 10, how many workers are required to produce q =1,000? What is the average productivity of puffed-rice workers? (c) Suppose technical progress shifts the production function to q = 200 VKL. Answer parts (a) and (b) for this new situation.
- Q2. Determine the returns to scale of the following production function: Hand written plzz Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminateQUESTION 1 For the production function Qs = K0.6L0.7 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).For the production function Qs = K0.4L0.1 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
- A firm has the following production function: Q = 9L2/3K1/3 Where Q is output, L is labor and K is Capital. Where Q is output, L is labor and K is Capital. (a) What sort of returns to scale characterize this production function? (b) Derive the marginal product of labor and capital. (c) What do we mean when we say the production function is linearly homogenous?Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminateA12. Which of the following production functions does not feature constant returns to scale? -0.3 a) Y₁ = K0.³ L0.7 t b) Yt = 0.6Kt +0.4Lt c) Y = (Kt – 1)04L06 - d) Yt = 6Kt + 4Lt
- How would you determine that a two-input Cobb-Douglas production function has decreasing returns to scale (DRS), increasing returns to scale (IRS) or constant returns to scale (CRS) depending on whether β is larger than, smaller than, or equal to one?Which of the following production functions exhibits constant return to scale? A) q=KL B) q=KL0.5 C) q=K+L D) q=log(KL)What is the difference between economies of scale andeconomies of scope? How do firms consider these wheninvesting in processes?