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Question: CD Inc. has estimated that it has the following production function: Q = 80(L)^0.4(K)^0.6
a. Draw up an input-output table for this function up to the input of eight units of capital and labour.
b. Comment on returns to scale from the function; how can you check this from your table in (a)?
c. If capital is fixed at four units, draw a graph of total, marginal and average product. d. Explain why marginal and average product are continuously declining
many economists have estimated that the short-run and long-run elasticities of oil demand. let us see if a rise in the
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If the demand and supply curves for boxes are: D = 100 - 8P and S = 22 + 4P, where P is the price of boxes. Saudi electronic university. econ 101.
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This problem works through the task of graphing short-run and long-run cost curves that will look different from those we have graphed in class.
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Suppose the landlord lets the tennants do whatever they want. According to the Coase theorem, how might Pedro and Mario reach an efficient outcome on their own What might prevent them from reaching an efficient outcome
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