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"
Homework Answers
D is right answer because MPK=dy/dk=b. Note marginal product is equal to slope or first differentiation w. R. T k
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If Y = b*K + c*L, then: a. the marginal product of labor
diminishes b. the...
QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of...
QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of the product is $100 and wage = 200. Based on information above, the marginal product of labor at the optimal level of employment is $3 $2 $1.5 $1 2 points QUESTION 6 If the labor elasticity of output is 0.5 and the capital elasticity of output is 0.9, then the production function exhibits constant returns to scale. economies of scale. diseconomies of scale. diminishing...
Use the production function:Y=K^(3/4)*L^(3/4) to Show that marginal product is decreasing for both capital and labor(5pts),...
Use the production function:Y=K^(3/4)*L^(3/4) to Show that marginal product is decreasing for both capital and labor(5pts), yet there are increasing returns to scale(5pts).
Suppose a firm has a production function given by Q=2K+L, where L is labor, K is...
Suppose a firm has a production function given by Q=2K+L, where L is labor, K is capital and Q is the quantity of output. Which of the following statements is WRONG? A. The firm is exhibiting constant returns to scale B. The firm’s marginal product of capital is constant C. The firm’s marginal product of labor is constant D. The firm’s marginal rate of technical substitution depends on the amount of inputs
Consider the production function given by y = f(L,K) = L^(1/2) K^(1/3) , where y is...
Consider the production function given by y = f(L,K) = L^(1/2) K^(1/3) , where y is the output, L is the labour input, and K is the capital input. (a) Does this exhibit constant, increasing, or decreasing returns to scale? (b) Suppose that the firm employs 9 units of capital, and in the short-run, it cannot change this amount. Then what is the short-run production function? (c) Determine whether the short-run production function exhibits diminishing marginal product of labour. (d)...
1. A production function is given by f(K, L) = L/2+ v K. Given this form,...
1. A production function is given by f(K, L) = L/2+ v K. Given this form, MPL = 1/2 and MPK-2 K (a) Are there constant returns to scale, decreasing returns to scale, or increasing returns to scale? (b) In the short run, capital is fixed at -4 while labor is variable. On the same graph, draw the 2. A production function is f(LK)-(L" + Ka)", where a > 0 and b > 0, For what values of a and...
Acme produces anvils using labor (L) and capital (K) according to the production function Q= f(L,K)=LK...
Acme produces anvils using labor (L) and capital (K) according to the production function Q= f(L,K)=LK with associated marginal products MPL=K, MPK =L. The price of labor is w=2 and the price of capital is r=1. Does Acme's production function for anvils exhibit increasing, constant or decreasing returns to scale? Justify your answer
12. A firm has the production function q = f(L, K) = L + K2 This...
12. A firm has the production function q = f(L, K) = L + K2 This firm has: a. decreasing returns to scale b. increasing returns to scale c. constant returns to scale d. increasing marginal product e. None of the above.
Q=100K^0.7L^0.4 Find the marginal product of labor Find the marginal product of capital Is there diminishing...
Q=100K^0.7L^0.4 Find the marginal product of labor Find the marginal product of capital Is there diminishing marginal rate of technical substitution? Explain. Does the production function exhibit constant, increasing, or decreasing returns to scale.
a firms production function is Q=K^.2*L^.8 .The cost of labor $20 and the cost of capital...
a firms production function is Q=K^.2*L^.8 .The cost of labor $20 and the cost of capital is $80.a) what is the cost-minimizing combo of K and L if Q=100? b)does this firm have constant, increasing, decreasing returns to scale? explain. c)Prove your answer to part b using the definitions of constant, increasing or decreasing returns to scale.
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
1. A production function is given by f(K, L) = L/2+ v K. Given this form, MPL = 1/2 and MPK-2 K (a) Are there constant returns to scale, decreasing returns to scale, or increasing returns to scale? (b) In the short run, capital is fixed at -4 while labor is variable. On the same graph, draw the 2. A production function is f(LK)-(L" + Ka)", where a > 0 and b > 0, For what values of a and...
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