13) Does the production function of Table 7-1 show constant, increasing or decreasing returns to scale...
Does the production function of table 7-1 below show constant, increasing, or decreasing return to scale if the firm increases the quantity of labor and capital used from (a) 2L and 2K to 4L and 4K? (b) 2L and 4K to 3L and 6K? TABLE 7-1 Production Function with Two Inputs 36 40 40 36 30 14 40 42 40 36 30 14 39 40 36 Output (0) 10 12 12 10 24 28 28 23 18 31 36 36...
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 +...
For each of the following production functions, determine whether returns to scale are decreasing , constant, or increasing when capital and labor inputs are increased from K = L = 1 to K = L = 2 Q = 25K0.5 L0.5 Q = 2K + 3L + 4KL Q = 100 + 3K + 2L
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
13. Which of the following production functions exhibit decreasing returns to scale? In each case, q is output and K and L are inputs. (1)q=K1/3 L2/3.(2)q=K1/2 L1/2.(3)q=2K+3L. a. 1,2,and3 b. 2and3 c. 1and3 d. 1and2 e. None of the functions
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...
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
1. Below are production functions that turn capital (K) and labor (L) into output. For cach of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (K,L, (M)) by a factor of a, where a > 1: (3 points each) (a) F(K,L)-KİLİ+2K +3L (b) F(K, L)=min/4K, 2L1+20 (d) F(K,L,M) KL3M 1. Below are production functions that turn capital (K) and...
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
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.