ZuoTi.Pro
Question

Consider production function f(l, k) = l2 + k2 (a) Evaluate the returns to scale. (b)...

Consider production function
f(l, k) = l2 + k2
(a) Evaluate the returns to scale.
(b) Calculate the marginal product of labor and the marginal product of capital.
(c) Calculate the MRTS.
(d) Does the production function exhibit diminishing MRTS?
(e) Plot the isoquant for production level q = 1.
Hint: Notice that the input mixes (1; 0) and (0; 1) are on this isoquant.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

As per our Honor code we are allowed to do four questions.

0 0
Add a comment
Know the answer?
Add Answer to:
Consider production function f(l, k) = l2 + k2 (a) Evaluate the returns to scale. (b)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. Consider a firm that has the following CES production function: Q = f(L,K) = [aLP...

    1. Consider a firm that has the following CES production function: Q = f(L,K) = [aLP + bK°]!/p where p a. Derive the MRTS for this production function. Does this production function exhibit a diminishing MRTS? Justify using derivatives and in words. What does this imply about the shape of the corresponding isoquants? (10 points) b. What are the returns to scale for this production function? Show and explain. Explain what will happen to cost if the firm doubles its...

  • Consider the production function given by y = f(L,K) = L^(1/2) K^(1/3) , where y is...

    Consider the production function given by y = f(L,K) = L^(1/2) K^(1/3) , where y is the output, L is the labour input, and K is the capital input. (a) Does this exhibit constant, increasing, or decreasing returns to scale? (b) Suppose that the firm employs 9 units of capital, and in the short-run, it cannot change this amount. Then what is the short-run production function? (c) Determine whether the short-run production function exhibits diminishing marginal product of labour. (d)...

  • Given production function Q=f(K, L) = 8KL + √L where K is capital and L is labor.

    Given production function Q=f(K, L) = 8KL + √L where K is capital and L is labor. a. Find marginal product of labor and marginal product of capital.b. Define what is marginal rate of technical substitution, MRTS. Calculate the MRTS  for the above case.c. When K = 10, L = 16, what is the total output? Sketch this isoquant function on a diagram where K is the vertical axis and L is the horizontal axis.

  • 3) Consider the production function ? = 6? 0.3? 0.6 . The marginal products are ???...

    3) Consider the production function ? = 6? 0.3? 0.6 . The marginal products are ??? = 1.8? −0.7? 0.6 and ??? = 3.6? 0.3? −0.4 . a. In the short run assume that capital is fixed at ? = 10. Derive formulas for the short-run Total Product (TP), Average Product (APL), and Marginal Product (MPL). Graph these three functions. b. In the long run, capital is not fixed. Graph the isoquant for ? = 6. Identify and label three...

  • Consider a firm that has the following CES production function: Q = f(L,K) = [aL^ρ + bK^ρ]^1/ρ where ρ ≤ 1. Please...

    Consider a firm that has the following CES production function: Q = f(L,K) = [aL^ρ + bK^ρ]^1/ρ where ρ ≤ 1. Please clearly show each STEP and make sure your handwriting is LEGABLE. Thank you Derive the MRTS for this production function. Does this production function exhibit a diminishing MRTS? Justify using derivatives and in words. What does this imply about the shape of the corresponding isoquants? (10 points) What are the returns to scale for this production function? Show...

  • Suppose the production function is given as Q = VLK. Suppose also that the price of...

    Suppose the production function is given as Q = VLK. Suppose also that the price of labor w = 10 and the price of capital r = 40 1) Derive the equation of the isoquant corresponding to this production function? 2) What type of return to scale does this production exhibit? 3) Does this production function exhibit a diminishing MRTS? Why? 4) Based on this production function, is the law of diminishing marginal returns satisfied? 5) Derive the demand curves...

  • 12. A firm has the production function q = f(L, K) = L + K2​ ​This...

    12. A firm has the production function q = f(L, K) = L + K2​ ​This firm has: a. decreasing returns to scale b. increasing returns to scale c. constant returns to scale d. increasing marginal product e. None of the above.

  • 2. For the following Cobb-Douglas production function, q = f(L,K) = _0.45 0.7 a. Derive expressions...

    2. For the following Cobb-Douglas production function, q = f(L,K) = _0.45 0.7 a. Derive expressions for marginal product of labor and marginal product of capital, MP, and MPK. b. Derive the expression for marginal rate of technical substitution, MRTS. C. Does this production function display constant, increasing, or decreasing returns to scale? Why? d. By how much would output increase if the firm increased each input by 50%?

  • 1. A production function is given by f(K, L) = L/2+ v K. Given this form,...

    1. A production function is given by f(K, L) = L/2+ v K. Given this form, MPL = 1/2 and MPK-2 K (a) Are there constant returns to scale, decreasing returns to scale, or increasing returns to scale? (b) In the short run, capital is fixed at -4 while labor is variable. On the same graph, draw the 2. A production function is f(LK)-(L" + Ka)", where a > 0 and b > 0, For what values of a and...

  • The production function q = k0.620.5 exhibits: a. increasing returns to scale and diminishing marginal products...

    The production function q = k0.620.5 exhibits: a. increasing returns to scale and diminishing marginal products for both k and 1. b. increasing returns to scale and diminishing marginal product for 1 only. c. increasing returns to scale but no diminishing marginal productivities. d. decreasing returns to scale.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT