Returns to scale in production: Do the following production function exhibit increasing, constant, or decreasing returns...
1. State whether the following production functions exhibit increasing, constant, or decreasing returns to scale in K and L. (a) Y = K1/3L1/2 (b) Y = K2/3L (c) Y = K1/2 [1/2
2) Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale (or none of these) a) Y=K+L^1/3 b) Y= aln(L) + bIn(k)
Given the following production functions, determine if they exhibit increasing, decreasing, or constant returns to scale. Be sure to mathematically prove your answer and show your work. Y = K + L Y = 4(K + L)0.5 Y= 10(KL0.5)
Briefly show whether the following production functions exhibit increasing, decreasing, or constant returns to scale: Y = K2/3 + L2/3 Y = min {2L+K, 2K+L} Y = 20*L1/5*K4/5
Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale. L, K, and H are inputs and Q is the output in each production function. Initially, set each input = 100 and determine the output. Then increase each input by 2% and determine the corresponding output to see if constant, increasing, or decreasing returns to scale occur. (a) Q = 0.5L + 2K + 40H (b) Q = 3L + 10K +...
Do the following production functions exhibit increasing, constant, or decreasing returns to scale? (show your work to illustrate the answer), where Q is quantity of output, K is the amount of capital used, and L is the amount of labor used. a) Q=K^1/3 L^2/3 b) Q=7K^1/5 L^3/5 c) Q=4K+8L d) Q=3k^5 L^4
For the production function Q = 8L2K2, returns to scale: is increasing. is constant. is decreasing. n be increasing, decreasing, or constant depending on the values of L and
Returns to scale. A production function has constant returns to scale with respect to inputs with inputs K and L if for any z > 0: F(z · K, z ·L) = zF(K, L), For example, for a production function with constant returns to scale, doubling the amount of each input (i.e., setting z = 2) will lead to a doubling of the output from the production function. A production function has increasing returns to scale if for any z >1: F(z ·...
4. Do the following functions exhibit constant, increasing or decreasing returns to scale? a. l 31K2 b. Q L1'2K1' 21 c.Q 4L1'2 4K
1a) A production function has the form f(a,b) = a^2 x b^3 . Does this function exhibit constant, increasing, or decreasing returns to scale? 1b)A production function has the form f(a,b) = 3a^1/2 x b^1/2. Does this function exhibit constant, increasing, or decreasing returns to scale? Explain. Thank you.