Generalizations about functional form of production equation

Reference no: EM131789585

Question: 1. Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.

a. Q = 75L^0.25K^0.75

b. Q = 75A^0.15B^0.40C^0.45

c. Q = 75L^0.60K^0.70

d. Q = 100 + 50L + 50K

e. Q = 50L + 50K + 50LK

f. Q = 50L² + 50K²

g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.

Reference no: EM131789585

Questions Cloud

What is the empirical probability of getting heads : Simulate flipping a coin 20 times. Use the line of random numbers below to obtain and report the resulting list of heads and tails.

Find the rate of change of sales at any time t : Advertising and sales. A product with a large advertising budget has its sales S (in millions of dollars) given by

What is the amount of depreciation recapture : A 5-year MACRS class equipment that costs $50,000 was sold for $15,000 after depreciating it for 3 years using MACRS.

Find a function that models the rate : Use this model to find a function that models the instantaneous rate of change of y.

Generalizations about functional form of production equation : Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.

Calculate the ubit if the corporate tax rate : Calculate the UBIT if the corporate tax rate is 15 percent on the first $50,000 of net income and 25 percent on the next $25,000 of income

What is the probability that neither of them : Use of obsolete helmets by bikers in the United Kingdom in 2016 is estimated at 40%, which means 40% of bikers use helmets that have become obsolete.

Calculate additional profit associated with running batch : Question - Batch Size Decision and Constraints. Calculate the additional profit associated with running larger batch sizes through the powder-coating process

Us cellular subscriberships : The table shows the numbers of U.S. cellular subscriberships (in millions) from 1995 to 2008.

User Account

All Pages