Suppose the production of paved roadways is represented as Q(L,K) = LK + L. Based on...
Suppose the production of paved roadways is represented as Q(L,K) = LK + L. Based on this production function, which of the following statements is (are) TRUE?
A. In the short-run when capital is held constant, labor exhibits the law of diminishing returns.
B. The isoquants for paved roadways are downward sloping and convex to the origin.
C. The production function exhibits constant returns to scale.
D. Both a and b are true.
E. Both b and c are true.
F. None of the above statements are true.
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Suppose the production of paved roadways is represented as
Q(L,K) = LK + L. Based on...
a. Suppose that a firm has the Cobb-Douglas production function = 12K0.75 0.25. Because this function...
a. Suppose that a firm has the Cobb-Douglas production function = 12K0.75 0.25. Because this function exhibits returns to scale, the long-run average cost curve is , whereas the long-run total cost curve is upward-sloping, with slope. b. Now suppose that the firm's production function is = KL. Because this function exhibits returns to scale, the long-run average cost curve is upward-sloping , whereas the long-run total cost curve is upward-sloping, with slope. a. Suppose that a firm has the...
1. A production function is given by f(K, L) = L/2+ v K. Given this form,...
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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)...
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Question 4 a) The firm ACME has the production function f ( K , L)=K 2...
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7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity of output, K is the quantity of capital and L is the quantity of labor. If capital is fixed at 10 units in the short run then the short-run production function is: Q=10KL b. Q=50KL? Q=10L? d. 0=50L Q=500KL 8. For a linear total cost function: a. MC will be downward sloping b. MC = AVC c. AVC is upward sloping and linear d....
A company has the production function Q = min{K, L}. The price of capital is $50...
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Suppose that q 30, L 2, and K-10 is a point on the production function q=f(L, K) Is it posssible for q 30, L 2, and K-11 to also be a point on this production function? Why or why not? The combination q -30, L-2 and K-11 O A. cannot be a point because we assume production functions represent the short run O B. can be a point because we assume production functions exhibit diminishing returns. ° C. cannot be...
a. Suppose that a firm has the Cobb-Douglas production function = 12K0.75 0.25. Because this function exhibits returns to scale, the long-run average cost curve is , whereas the long-run total cost curve is upward-sloping, with slope. b. Now suppose that the firm's production function is = KL. Because this function exhibits returns to scale, the long-run average cost curve is upward-sloping , whereas the long-run total cost curve is upward-sloping, with slope. a. Suppose that a firm has the...
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Suppose that q 30, L 2, and K-10 is a point on the production function q=f(L, K) Is it posssible for q 30, L 2, and K-11 to also be a point on this production function? Why or why not? The combination q -30, L-2 and K-11 O A. cannot be a point because we assume production functions represent the short run O B. can be a point because we assume production functions exhibit diminishing returns. ° C. cannot be...
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