Solved: Nature of returns to scale for the production function, Microeconomics

+44 141 628 6080
[email protected]

Nature of returns to scale for the production function

Task: Consider the production function Q=100L^.5K^.4. Suppose L=1 and K=1 so that Q=100

Q1. If L is increased by 1 percent, that is to L=1.01 with capital unchanged, what is the resulting percentage increase in output?

Q2. Describe the nature of returns to scale for this production function.

Solution Preview :

Prepared by a verified Expert

Microeconomics: Nature of returns to scale for the production function

Reference No:- TGS01749875

Now Priced at $25 (50% Discount)

Recommended (93%)

Rated (4.5/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Microeconomics

Q : Write a note on marketing extra credit opportunities

Please note that you may only turn in ONE article PER Concept. In other words, you cannot submit multiple articles/write-ups on the same concept.

Q : Discuss national labor relations board

Visit the websites of any three state or federal administrative agencies: for example National Labor Relations Board (NLRB), Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA), Securities and Exchange Commi

Q : Discuss the resource-based mode

ssess how the vision statement and mission statement of the corporation influence its overall success. Evaluate how each category of stakeholder impacts the overall success of this corporation.

Q : Determine the average total cost schedules

Determine the average total cost schedules for each plant type for annual outputs of 25,000, 50,000, 75,000, …,350,000. For output levels beyond the capacity of a given plant, assume that multiple plants of the same type are built.

Q : Nature of returns to scale for the production function

Q1. If L is increased by 1 percent, that is to L=1.01 with capital unchanged, what is the resulting percentage increase in output? Q2. Describe the nature of returns to scale for this production function.

Q : Consequences of not utilizing current codes and charges

CEO Beranger asks you to summarize the HIPAA Privacy and Security Rules and how they protect patient information. Additionally, she requests that you construct the hospital's new e-Health Code of Ethics in at least 1 page.

Q : Corresponding prices and the demand functions

Where Q1 and Q2 denote quantities of good 1 and 2. P1 and P2 denote the corresponding prices and the demand functions are:

Q : Find the optimal crude oil allocation

Find the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $0.375 per square foot.

Q : Law of diminishing returns can seem counter-intuitive

The Law of Diminishing Returns can seem counter-intuitive. What example of diminishing returns could be used to explain this concept to a friend?

1928911

Questions
Asked

3,689

Active Tutors

1413651

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Microeconomics: Nature of returns to scale for the production function

Reference No:- TGS01749875

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Write a note on marketing extra credit opportunities

Q : Discuss national labor relations board

Q : Discuss the resource-based mode

Q : Determine the average total cost schedules

Q : Nature of returns to scale for the production function

Q : Consequences of not utilizing current codes and charges

Q : Corresponding prices and the demand functions

Q : Find the optimal crude oil allocation

Q : Law of diminishing returns can seem counter-intuitive

What should nurse expect to see in client living with esld

Patient newly diagnosed with polycystic kidney disease

Requirement to provide treatment to newborns

Recommendations made for anticoagulation therapy

Identify the circumstances when informed consent

Statment by client indicates the need for further teaching

Describe psychiatric clinic by her primary provider

Solution Preview :

Prepared by a verified Expert

Microeconomics: Nature of returns to scale for the production function

Reference No:- TGS01749875

Recent Questions Asked Microeconomics

Q : Write a note on marketing extra credit opportunities

Q : Discuss national labor relations board

Q : Discuss the resource-based mode

Q : Determine the average total cost schedules

Q : Nature of returns to scale for the production function

Q : Consequences of not utilizing current codes and charges

Q : Corresponding prices and the demand functions

Q : Find the optimal crude oil allocation

Q : Law of diminishing returns can seem counter-intuitive

Asked Questions