User Account

All Pages

Is the production function homogenous

Assignment Help Microeconomics
Reference no: EM132500224

1. Consider a price-taking firm operating in a market with price,p. The production function for the firm is F(K, L)=K^alpha L^beta. Where K is units of Capital and L is units of Labour. If the cost of each unit of capital is r and the cost of each unit of labour is w.

a. Is the production function homogenous? If so, what is the degree of homogeneity?

b. Under what conditions does the production function exhibit increasing, constant or decreasing returns to scale?

c. Write out the Cost Function C(K,L). Is the cost function homogenous? If so, what is the degree of homogeneity?

d. Write out the profit function pie(K,L). Is the profit function homogenous? If so, what is the degree of homogeneity?

e. Find the critical values for the profit function, L*and K*.

f. Under what conditions are the values in part e. profit maximizing?

g. Find the maximum profit under the condition specified in part f.  What can you say about the case where the conditions in part f. are violated

Reference no: EM132500224

Questions Cloud

Explain the 4 quadrants as to the outcomes : Explain the 4 quadrants as to the outcomes of each. How would collusion have been helpful to the outcome of both Betty and Al
What is the rate per hour for each packaging and shipping : What is the rate per hour for each packaging and shipping employee at FAB?? Determine the? formula, then calculate the rate per hour for each employee.
What was your overall work process in developing the website : How has your knowledge about public health informatics changed throughout the course? What did you already know? What surprised or interested you?
Function for the purpose of maximizing profit : Minima and Maxima; Marginal cost and Marginal Revenue: Can you illustrate two different demand and cost functions
Is the production function homogenous : Is the production function homogenous? If so, what is the degree of homogeneity?
How was the principle applied to your experience : Select one of the seven principles of Incident Command Structure (ICS) and describe a personal/professional incident. How was the principle applied to your.
What is the predetermined overhead rate : What is the predetermined overhead rate?Allocation Base Machine-hours,Estimated manufacturing overhead cost,Estimated total amount of the allocation Base
How do i find the marginal product of labor : (a) How do I find the marginal product of labor, MPL, and the marginal product of capital, MPK?
Analyzing the effects of globalization and citizenship : Using Naomi Klein's work, write a research paper (2000 to 2500 words, not including footnotes and bibliography) analyzing the effects of globalization.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd