Determine what is the percentage change in output

Assignment Help Econometrics

Reference no: EM13219587

Assume Firm Y's production function is given by the following Cobb Douglas equation: Q = 0.5 x L0.6 x K0.5 where L denotes labor and K denotes capital.

a. Does the production function exhibit increasing, decreasing or constant returns to scale? Explain.

b. If labor hours increase by 10%, what is the percentage change in output? Explain.

c. If capital decreases by 10%, what is the percentage change in output? Explain.

d. If the number of labor hours increases by 10% and the number of hours of capital used decreases by 10%, what is the percentage change in output?

Reference no: EM13219587

Questions Cloud

How do c++ chars differ from java chars : How do C++ chars differ from Java chars?

What does a java class contain : What does a Java class contain that identifies it as a Java application?

Show strategic and operational control responsibilities : Earlier in the semester we examined the Balance Scorecard as a tool for strategic planning that provided a framework for objective and goal setting. How is this tool also used as an essential framework mechanism in guiding the business control pro..

What is the command you would use to compile the file : What is the command you would use to compile the file Addition.java?

Determine what is the percentage change in output : Assume Firm Y's production function is given by the following Cobb Douglas equation: Q = 0.5 x L0.6 x K0.5 where L denotes labor and K denotes capital. a. Does the production function exhibit increasing, decreasing or constant returns to scale Expl..

Make the symbol of the isotope : write the symbol of the isotope represented by the following drawing. blue spheres represent neutrons

Write a java statement to display the string : Write a Java statement to display the string "The value is 100" to a user in a plain dialog box.

What are the neurological foundations of taste-touch-smell : What are the neurological foundations of taste, touch, and smell?

Is the java source filename extension : is the Java source filename extension? What is the Java bytecode filename extension?

User Account

All Pages