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:
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Doubling all inputs delivers exactly twice the output. |
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Doubling all inputs delivers exactly more than twice the output. |
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Doubling all inputs delivers exactly less than twice the output. |
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none of the above |
The marginal product of capital (MPK) is:
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The additional unit of output that is produced when both labor and capital are increased by one unit. |
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The additional output that is produced when there is technological improvement. |
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The additional output that is produced when one unit of labor is added, holding all other inputs constant. |
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The additional output that is produced when one unit of capital is added, holding all other inputs constant. |
Homework Answers
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A production function exhibits constant returns to scale if:
Doubling all inputs delivers exactly twice the...
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...
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.)
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 ·...
1. In the case of a short-run production function: all of the inputs are variable. at...
1. In the case of a short-run production function: all of the inputs are variable. at least one of the inputs is fixed. the amount of labor employed is held constant. all of the inputs are fixed. 2. In the long-run production function, all of the inputs to the production process are allowed to vary. True False 3. In which of the following situations would a firm be more likely to rely on a capital-intensive method of production? When labor...
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
Consider a production model with labor and capital inputs. There are constant returns to scale overall....
Consider a production model with labor and capital inputs. There are constant returns to scale overall. If M P K > r > 0 and M P L > w > 0, the firm Group of answer choices should hire more capital until has the optimal amount of labor should get rid of some capital until should get rid of some capital until should hire more capital until
the second question In Example 6.4 wheat is produced according to the production function: q=100(k0.6 0.4)...
the second question
In Example 6.4 wheat is produced according to the production function: q=100(k0.6 0.4) Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing (Round responses to two decimal places.) The MPK at 5 units of capital is 156.12 The MP at 6 units of capital is 144.02 The MP at 50 units of labor is 8.84 The MP...
QUESTION 7 The function q= 2K + L exhibits: a. constant returns to scale b. increasing...
QUESTION 7 The function q= 2K + L exhibits: a. constant returns to scale b. increasing returns to scale c. decreasing returns to scale d. any of the above depending on the values for K and L 10 points QUESTION 8 The short run is defined to be the period of time during which: a. at least one input is fixed b. all inputs are variable c. at least one input is variable d. all inputs are fixed 10...
Morgan and Doyle have a business. The production function for that business can be described by the following expressi...
Morgan and Doyle have a business. The production function for that business can be described by the following expression: Y=LL2, where L = hours of work put in by Morgan and L2 = hours of work put in by Doyle. This production function exhibits: O constant returns to scale. increasing returns to scale, i.e., when doubling all inputs increases output by more than double. decreasing returns to scale, i.e., when doubling all inputs increases output by less than double. O...
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 True False
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.)
the second question
In Example 6.4 wheat is produced according to the production function: q=100(k0.6 0.4) Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing (Round responses to two decimal places.) The MPK at 5 units of capital is 156.12 The MP at 6 units of capital is 144.02 The MP at 50 units of labor is 8.84 The MP...
Morgan and Doyle have a business. The production function for that business can be described by the following expression: Y=LL2, where L = hours of work put in by Morgan and L2 = hours of work put in by Doyle. This production function exhibits: O constant returns to scale. increasing returns to scale, i.e., when doubling all inputs increases output by more than double. decreasing returns to scale, i.e., when doubling all inputs increases output by less than double. O...
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