Do the following functions exhibitnincreasing, decreasing or constant returns to scale. Ensure to explain your answer Q=(5L+5K)^0.5 Q=(2L+2K)^0.5 Q=4L^1/2+4K
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Do the following functions exhibitnincreasing, decreasing or constant returns to scale. Ensure to explain your answer
Q=(5L+5K)^0.5
Q=(2L+2K)^0.5
Q=4L^1/2+4K
Step by step
Solved in 3 steps
- b) Do the following functions exhibit constant, increasing or decreasing returns to scale. Ensure to comment on your findings i. Q = 0.5KL ii. Q= 4L1/2+ 4K iii. Q = L1/2 K1/2What are the functions for MC and AC if TC = 100q + 100q2? Are the returns to scale increasing, decreasing, or constant?100VKL, 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.
- 12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1, 12}. 1/4 (b) f(z) = xỉ + x}/2 1/4 1/2 (c) f(x) = r1 + xj"x (d) f(x) = VE +a3.Determine the returns to scale of this production function: F(x1, x2) = [xỉ + x3]!/2 %3D A. Constant return to scale B. Increasing return to scale C. Decreasing return to scaleLet C(T) be a function that models the dependence of the cost (C) in thousands of dollars on the amount of ore to extract from a copper mine measured in tons (T): 1) If you computed the average rate of change of cost with respect to tons for production levels between T = 20000 and T = 40000, give the units of your answer (no calculations - describe the units of the rate of change). 2) If you had a function for C(T) and were able to calculate the answer to part 1, explain why you would not expect your answer to be negative (explanation should be in terms of cost, tons of ore to extract, and rates of change).
- For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale b.Decreasing Returns to Scale c.Increasing Returns to Scale d.Zero Return to ScaleHi, I have been trying to compute the optimal values from this lagrangian. But I can't seem to find a way to get the values from the answer key. I attached both the question and answers. Could you please explain to me how to get these values from the first-order conditions? Thank you very muchIt costs a company $58 to produce 6 units of a product and $78 to produce 10 units. Assuming that the cost is linear, how much does it cost to produce 25 units?
- 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).A12. 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 + 4LtA company produces commercials. A 2-minute commercial, for example, needs exactly 5 minutes of filming and 8 minutes of editing. Let x1 denote the minutes of filming and x2 denote the minutes of editing. a) Write down the production function and state whether it has increasing, constant, or decreasing returns to scale b) Suppose that filming costs $45 per minute and editing costs $10 per minute. To produce a 5-minute commercial, how many minutes of filming and how many minutes of editing is needed to minimize cost? c) Suppose that filming costs w1 per minute and editing costs w2 per minute. Let y denote the length (in minutes) of commericals produced. derive the conditional factor demand functions x1(w1,w2,y) and x2(w1,w2,y) and its cost function c(w1,w2,y)
