Winston's Widgets has the production function Q = 200LK. For this production function the marginal returns to labourare,)diminishing.b)constant.c)increasing.d)not possible to assess with the information provided.
Winston's Widgets has the production function Q = 200LK. For this production function the marginal returns...
Winston's Widgets has the production function Q = 200LK. For this production function the marginal rate of technical substitutionare,a)diminishing.b)constant.c)increasing.d)not possible to assess with the information provided.
Does the following production function have diminishing marginal returns to labor in the SR? Q = 5LK1/2 yes no Cannot be determined from the information
Question three An enterprising entrepreneur produces widgets and has a production function given by q=sq root lk In particular, factory has k =25, where. Rental rates for k and l are given by w =v = $1. a. If the entrepreneur wishes to minimize short-run total costs of widget production, how much output be produced? b. Given that output is optimally allocated, calculate the short-run total, average, and marginal cost curves. What is the marginal cost of the 100th widget?...
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.
1. For a constant returns to scale production function: a. marginal costs are constant but the average cost curve as a U-shape b. both average and marginal costs are constant c. marginal cost has a U-shape, average costs are constant d. both average and marginal cost curves are U-shaped 2. The production function q = 10K +50L exhibits: a. increasing returns to scale b. decreasing returns to scale c. constant returns to scale d. none of the above
2. Suppose the production function for widgets is given by where q represents the annual quantity of widgets produced, K represents the annual capital input, and L represents the annual labor input. a. Suppose K 10, write down the expressions for the total product and the average product of labor. At what level of labor input does average productivity reach a maximum? How many widgets are produced at that point? b. Again, assuming that K-10, graph the average product of...
A company A can produce widgets according to Q=5K3/4L1/4 where Q is the output of widgets, and K, L are quantities of capital and labor used. Are there constant, increasing or decreasing returns to scale in widget production? Explain. Are there, constant, increasing or decreasing marginal products of factors? Explain In the short run, the amount of capital used by company A. is fixed. Derive the short-run cost function. (Note that the short-run cost function will show C as a...
A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this firm's widgets is Q = 105 - 2P Given the above information, compute the social cost of this firm's monopoly power. The social cost is $ . (Round your response to the nearest penny.)
A firm has the production function Q= 4LK. The marginal products are given by MPL = 4K and MPK= 4L. Suppose that the prices of labour and capital are given by w and r. Solve for the quantities of L and K that minimize the cost of producing Q units of output. Provide an expression for the long run total cost function. What returns to scale are exhibited by this production function? What economies of scale are exhibited? Show the...
VK2L has 8. The production function q returns to scale.