A firm has the production function

Assignment Help Business Economics

Reference no: EM13974703

A firm has the production function f(x, y) = x^0.90y^0.80. This firm has

a. constant returns to scale.

b. decreasing returns to scale and diminishing marginal products for factor x.

c. decreasing returns to scale and increasing marginal product for factor x.

d. increasing returns to scale and decreasing marginal product of factor x.

e. None of the above.

Reference no: EM13974703

Questions Cloud

Eliminate excess demand at the ceiling price : In a crowded city far away, the civic authorities decided that rents were too high. The long-run supply function of two-room rental apartments was given by q = 17 + 4p and the long-run demand function was given by q = 304 – 5p, where p is the rental ..

What is the wacc for fiala industries : Debt: 7000 8.5 % coupon bonds outstanding, with 20 years to maturity and a quoted price of 98. The bonds pay interest semiannually. What is the WACC for Fiala Industries?

Write a paper on micro electro-mechanical systems : You need to write paper on a compliant Mechanisms and Micro electro-mechanical systems (MEMS)

Demand function for grapefruit is defined by the equation : The inverse demand function for grapefruit is defined by the equation p = 317 − 6q, where q is the number of units sold. The inverse supply function is defined by p = 5 + 6q. A tax of $48 is imposed on suppliers for each unit of grapefruit that they ..

A firm has the production function : A firm has the production function f(x, y) = x^0.90y^0.80. This firm has

Firm undertakes the drug development project : Assume that a pharmaceutical firm knows it can develop a new drug in 12 years at an upfront cost of $300m (incurred in year 1). If the firm undertakes the drug development project, it knows it can earn an annual profit of $200m in each year (starting..

Estimate payables deferral period and cash conversion cycle : Estimate Payables deferral period, Cash conversion cycle, Inventory conversion period and Receivables collection period.

Relationship in country interest rate and exchange rate : Why is a nation's real interest rate more important for international investors than the nominal interest rate? Explain the relationship between a country's interest rate and its exchange rate.

Does defense spending include transfer payments : Does Defense Spending include transfer payments? Does Welfare (TANF) include transfer payments? Does Interest payments on government debt include transfer payments? Does social security include transfer payments?

User Account

All Pages