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9. (chapter 6) If the Cobb-Douglas production function is 92- , what is the average product...
In a Cobb Douglas production function the marginal product of labor will increase if: a. the...
In a Cobb Douglas production function the marginal product of labor will increase if: a. the quantity of labor increases. b. the quantity of capital increases. c. capital's share of output increases. d. average labor productivity decreases.
Assume the following Cobb-Douglas production function: Assume the following Cobb-Douglas production function: Y = AK 0.4...
Assume the following Cobb-Douglas production function:
Assume the following Cobb-Douglas production function: Y = AK 0.4 20.6 If Y=12; K=8; and L=95, answer the following questions (SHOW ALL YOUR WORK): - 1. What is total factor productivity? 2. With your answer in (1), assume L=95 and estimate the production function with respect to K 3. Estimate the marginal product of capital and demonstrate diminishing marginal product of capital 4. Estimate real capital income 5. Estimate the share of capital income...
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L...
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative numbers tell in terms of the amount of labor...
Sheet1 The Cobb-Douglas production function for a product is NIX.Y) - 10(x*O.B)(y^0.2) where is the number...
Sheet1 The Cobb-Douglas production function for a product is NIX.Y) - 10(x*O.B)(y^0.2) where is the number of units of labor and is the number of units of capital required to produce units of the product. What is the marginal productivity of labor and the marginal productivity of capital? What are they when there are 40 units of labor and 50 units of capital? NxIx.) Nx (40, 50) = Nyix,y) Ny 40, 50) If each unit of labor costs $100, each...
A “Cobb–Douglas” production function relates production (Q) to factors of production, capital (K), labor (L), and...
A “Cobb–Douglas” production function relates production (Q) to factors of production, capital (K), labor (L), and raw materials (M), and an error term u using the equation: ? = ???1??2M?3? ?, where ?, ?1, ?2, and ?3 are production parameters. a) Suppose that you have data on production and the factors of production from a random sample of firms with the same Cobb–Douglas production function. How would you propose to use OLS regression analysis to estimate the above production parameters,...
Question-3 (Marginal Products and Returns to Scale) (30 points) Suppose the production function is Cobb-Douglas and...
Question-3 (Marginal Products and Returns to Scale) (30 points)
Suppose the production function is Cobb-Douglas and f(x1; x2) =
x1^1/2 x2^3/2
1. Write an expression for the marginal product of x1.
2. Does marginal product of x1 increase for small increases in
x1, holding x2 fixed? Explain
3. Does an increase in the amount of x2 lead to decrease in the
marginal product of x1? Explain
4. What is the technical rate of substitution between x2 and
x1?
5. What...
4. Given a Cobb-Douglas production function Q = 25020602. 1) Derive expressions for the average and...
4. Given a Cobb-Douglas production function Q = 25020602. 1) Derive expressions for the average and marginal products of labour and capital; 2) Derive the partial elasticity w.t.r (with respect to) labour and capital.
Need help on some of my calculus homework The Cobb-Douglas production function for a product is...
Need help on some of my calculus homework The Cobb-Douglas production function for a product is N(x,y) = 10(x^0.8)(y^0.2) where x is the number of units of labor and y is the number of units of capital required to produce N units of the product. What is the marginal productivity of labor and the marginal productivity of capital? What are they when there are 40 units of labor and 50 units of capital? Nx(x,y) = Nx(40, 50) = Ny(x,y) =...
The Cobb-Douglas production function is given as: Q = AK1-aLa Where 0<a<1, a = .8, K...
The Cobb-Douglas production function is given as: Q = AK1-aLa Where 0<a<1, a = .8, K =4 is the amount of capital, and L=16 is the number of unit of labor, and A = 12 is the measure of TECHNOLOGY INDEX a) Find the real wage of labor (marginal product of labor), W/P, (b) Find rate of return of capital (marginal product of capital), and (c) Discuss the insights of your findings. (d) Why is there not a large amount...
Consider the following Cobb-Douglas production function for a firm that uses labor hours (L), capital (K),...
Consider the following Cobb-Douglas production function for a firm that uses labor hours (L), capital (K), and energy (E) as inputs: Q = (0.0012L^0.45)(K^0.3)(E^0.2) Determine the labor, capital and energy production elasticities. Suppose that worker hours are increased by 2 percent holding other inputs constant. What would be the resulting percentage change in output? Suppose that capital is decreased by 3 percent holding other inputs constant. What would be the resulting percentage change in output? What type of returns to scale appears...
Assume the following Cobb-Douglas production function:
Assume the following Cobb-Douglas production function: Y = AK 0.4 20.6 If Y=12; K=8; and L=95, answer the following questions (SHOW ALL YOUR WORK): - 1. What is total factor productivity? 2. With your answer in (1), assume L=95 and estimate the production function with respect to K 3. Estimate the marginal product of capital and demonstrate diminishing marginal product of capital 4. Estimate real capital income 5. Estimate the share of capital income...
Sheet1 The Cobb-Douglas production function for a product is NIX.Y) - 10(x*O.B)(y^0.2) where is the number of units of labor and is the number of units of capital required to produce units of the product. What is the marginal productivity of labor and the marginal productivity of capital? What are they when there are 40 units of labor and 50 units of capital? NxIx.) Nx (40, 50) = Nyix,y) Ny 40, 50) If each unit of labor costs $100, each...
Question-3 (Marginal Products and Returns to Scale) (30 points)
Suppose the production function is Cobb-Douglas and f(x1; x2) =
x1^1/2 x2^3/2
1. Write an expression for the marginal product of x1.
2. Does marginal product of x1 increase for small increases in
x1, holding x2 fixed? Explain
3. Does an increase in the amount of x2 lead to decrease in the
marginal product of x1? Explain
4. What is the technical rate of substitution between x2 and
x1?
5. What...
4. Given a Cobb-Douglas production function Q = 25020602. 1) Derive expressions for the average and marginal products of labour and capital; 2) Derive the partial elasticity w.t.r (with respect to) labour and capital.
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