The slope of the per-worker production function diminishes as the amount of capital per worker increases....
The slope of the per-worker production function diminishes as the amount of capital per worker increases. This is a reflection of the law of Select one: a. demand b. constant marginal returns c. diminishing marginal returns d. increasing marginal returns e. first diminishing then increasing marginal returns
Homework Answers
C.
Diminishing marginal returns
As amount of capital available to a worker is increased process of capital deepening occures. Thus output of a worker increases as resources provided to him increase. Now, ever rising capital later on though increases output but at a diminshing rate. This is indicative of law of diminishing marginal returns of capital.
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The slope of the per-worker production function diminishes as
the amount of capital per worker increases....
a. If increases in capital per worker lead to increased output per worker, but at a...
a. If increases in capital per worker lead to increased output per worker, but at a diminishing rate, the per-worker production function _____. a is horizontal b has an upward slope at an increasing rate c has an upward slope but at a diminishing rate d has a downward slope at a diminishing rate e has downward slope but at an increasing rate b. In poorer or "developing" countries there tends to be a Plentiful & cheap land but very...
Consider the production function below. ?? ?(?, ?) = ?? + ?? a) Find the demand...
Consider the production function below. ?? ?(?, ?) = ?? + ?? a) Find the demand for labor and capital b) Draw the demand curve for labor c) Does the production function exhibit diminishing marginal returns of labor? d) Is the production function exhibiting increasing, constant or decreasing returns to scale?
1.(20 pts) Consider the following production function: Y 4K NI-a and assume that a= ½ a....
1.(20 pts) Consider the following production function: Y 4K NI-a and assume that a= ½ a. Is this production function characterized by diminishing returns, constant returns, or increasing returns to scale? Justify your answer. Is the function characterized by diminishing or increasing returns to capital? Justify your answer. b. Transform the production function into a relation between output per worker (Y/N) and capital per worker (K/N), and then calculate the steady state levels of capital stock per worker, output per...
2. A different firm has this daily production function. Assume that capital is fixed at 8...
2. A different firm has this daily production function. Assume that capital is fixed at 8 units. q K1312/3 a. Give the marginal product function. (Write and circle your answer.) b. Give the derivative of the marginal product function. (Write and circle your answer.) c. Is the production function concave or convex? (Write and circle your answer.) Does this production function exhibit diminishing marginal product for labor? (Write "yes" or "no" and circle your answer.) d. Which best describes this...
QUESTION 1 Figure 1. On the horizontal axis, K/L represents capital (K) per worker (L). On...
QUESTION 1 Figure 1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L). 972 Refer to Figure 1. The curve becomes flatter as the amount of capital per worker increases because of Diminishing Returns to Capital O Diminishing Returns to Labor. Increasing Returns to Capital. Increasing Returns to Labor. QUESTION 20 The CPI was 96 in 1982, and the CPI was 208 in 2010. How much money...
If Y = b*K + c*L, then: a. the marginal product of labor diminishes b. the...
If Y = b*K + c*L, then: a. the marginal product of labor diminishes b. the marginal product of capital is increasing c. increasing returns to scale are present d. the marginal product of capital is constant and equal to "b"
3) Consider the production function ? = 6? 0.3? 0.6 . The marginal products are ???...
3) Consider the production function ? = 6? 0.3? 0.6 . The marginal products are ??? = 1.8? −0.7? 0.6 and ??? = 3.6? 0.3? −0.4 . a. In the short run assume that capital is fixed at ? = 10. Derive formulas for the short-run Total Product (TP), Average Product (APL), and Marginal Product (MPL). Graph these three functions. b. In the long run, capital is not fixed. Graph the isoquant for ? = 6. Identify and label three...
According to the law of diminishing returns a. Production increases at a decreasing rate b. Production...
According to the law of diminishing returns a. Production increases at a decreasing rate b. Production increases at a increasing rate c. Production decreases at a decreasing rate d. Production decreases at an increasing rate
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where...
Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where Y is GDP per capita, A is Total Factor Productivity, K is physical capital per worker, and L is human capital per worker. Which of the following is true about this production function? A.)There are diminishing returns to increases in Total Factor Productivity B.)Pluto only needs human capital per labor to be above zero to have production in its economy C.)There are diminishing returns...
1.(20 pts) Consider the following production function: Y 4K NI-a and assume that a= ½ a. Is this production function characterized by diminishing returns, constant returns, or increasing returns to scale? Justify your answer. Is the function characterized by diminishing or increasing returns to capital? Justify your answer. b. Transform the production function into a relation between output per worker (Y/N) and capital per worker (K/N), and then calculate the steady state levels of capital stock per worker, output per...
2. A different firm has this daily production function. Assume that capital is fixed at 8 units. q K1312/3 a. Give the marginal product function. (Write and circle your answer.) b. Give the derivative of the marginal product function. (Write and circle your answer.) c. Is the production function concave or convex? (Write and circle your answer.) Does this production function exhibit diminishing marginal product for labor? (Write "yes" or "no" and circle your answer.) d. Which best describes this...
QUESTION 1 Figure 1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L). 972 Refer to Figure 1. The curve becomes flatter as the amount of capital per worker increases because of Diminishing Returns to Capital O Diminishing Returns to Labor. Increasing Returns to Capital. Increasing Returns to Labor. QUESTION 20 The CPI was 96 in 1982, and the CPI was 208 in 2010. How much money...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
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