If a production function has constant returns to scale, then if all Inputs double so does production
If a production function has constant returns to scale, then if all Inputs double so does production
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TRUE If a production function has constant returns to scale,then if all inputs double so does production. Because constant returns to scale implies that if inputs increase by some amount ,then output would increase by the same amount.
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If a production function has constant returns to scale, then if all Inputs double so does production
Returns to scale. A production function has constant returns to scale with
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. Proving constant returns to scale A production function expresses the relationship between inputs, such as...
4. Proving constant returns to scale A production function expresses the relationship between inputs, such as capital (K) and labor (L), and output (Y). The following equation represents the functional form for a production function: 9=f(K, L). If a production function exhibits constant returns to scale, this means that if you double the amount of capital and labor used, output is twice its original amount. more than Suppose the production function is as follows: less than equal to f( KL)=5K+9L...
If the production function for an economy had constant returns to scale
If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, t would happen to real GDP? Select one: It would increase by 50 percent. It would stay the same. It would increase, but by something less than double. It would double.
A production function exhibits constant returns to scale if: Doubling all inputs delivers exactly twice the...
A production function exhibits constant returns to scale if: Doubling all inputs delivers exactly twice the output. Doubling all inputs delivers exactly more than twice the output. Doubling all inputs delivers exactly less than twice the output. none of the above The marginal product of capital (MPK) is: The additional unit of output that is produced when both labor and capital are increased by one unit. The additional output that is produced when there is technological improvement. The additional output...
1. For a constant returns to scale production function: a. marginal costs are constant but the...
1. For a constant returns to scale production function: a. marginal costs are constant but the average cost curve as a U-shape b. both average and marginal costs are constant c. marginal cost has a U-shape, average costs are constant d. both average and marginal cost curves are U-shaped 2. The production function q = 10K +50L exhibits: a. increasing returns to scale b. decreasing returns to scale c. constant returns to scale d. none of the above
In the case of a production function with TFP A and constant returns to scale, which...
In the case of a production function with TFP A and constant returns to scale, which of the following, all other things held constant, does not lead to a lower marginal product of capital (MPK)? A. None of the choices is correct. B. Higher I C. Higher depreciation rate D. Lower A E. Lower L
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...
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.
Does this production function, q = 10L 0.5K 0.3, experience increasing, decreasing or constant returns to...
Does this production function, q = 10L 0.5K 0.3, experience increasing, decreasing or constant returns to scale? Decreasing because 0.5 + 0.3 < 1. Increasing because an 80% increase in inputs increases outputs by 100%. Decreasing because a 100% increase in inputs increases outputs by 80%. A and C.
For the production function F(L,K)=(L+K)^2 find whether the firm has constant, increasing or decreasing returns to...
For the production function F(L,K)=(L+K)^2 find whether the firm has constant, increasing or decreasing returns to scale. . A firm has monthly production function F(L,K) = L+√1+K, where L is worker hours per month and K is square feet of manufacturing space. A. Does the firm's technology satisfy the Productive Inputs Principle? B. What is the firm’s MRTSlk at input combination (L, K)? Does the firm’s technology have a declining MRTS? C. Does the firm have increasing, decreasing, or constant...
10. Verify that If the production function exhibits constant returns to scale, the cost function may...
10. Verify that If the production function exhibits constant returns to scale, the cost function may be written as c(w, y)-ye(w, 1). (Hint: If the production function exhibits constant returns to scale, then it is intuitively clear that the cost function should exhibit costs that are linear in the level of output: if you want to produce twice as much output it will cost you twice as much.)
4. Proving constant returns to scale A production function expresses the relationship between inputs, such as capital (K) and labor (L), and output (Y). The following equation represents the functional form for a production function: 9=f(K, L). If a production function exhibits constant returns to scale, this means that if you double the amount of capital and labor used, output is twice its original amount. more than Suppose the production function is as follows: less than equal to f( KL)=5K+9L...
10. Verify that If the production function exhibits constant returns to scale, the cost function may be written as c(w, y)-ye(w, 1). (Hint: If the production function exhibits constant returns to scale, then it is intuitively clear that the cost function should exhibit costs that are linear in the level of output: if you want to produce twice as much output it will cost you twice as much.)
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