Production function exhibits diminishing marginal product

Assignment Help Basic Computer Science
Reference no: EM132022440

Suppose that a firm's technology is given by the following production function:

f(k,L) = 6k^1/6*L^1/6

1. Prove that this production function exhibits diminishing marginal product in both  and . This is not the same thing as decreasing returns to scale.

2. Prove that this production function exhibits decreasing returns to scale.

Suppose that the rental rate of capital is $10, the wage rate of labor is $10, and the price of output is $40.

3. What is the profit-maximizing quantity of capital and labor?

4. What is the profit-maximizing quantity of output?

5. What is the maximum profit for this firm?

Reference no: EM132022440

Questions Cloud

Analyze strengths and weaknesses of lifetime appointments : Analyze strengths and weaknesses of lifetime appointments of Supreme Court justices and whether or not you believe lifetime appointments have a positive impact
Macroeconomic equilibrium in the short run and the long run : Assuming that money is effectively used, how would this affect the macroeconomic equilibrium in the short run and the long run?
How the company has customized the product for a market : Go online and find one product that is produced by a company from each of the following categories below that is doing business internationally.
Elasticity of demand for bleacher seats at rays games : Next season, they increase the price to $12 per bleacher seat and sell 200,000. What is the elasticity of demand for bleacher seats at Rays games?
Production function exhibits diminishing marginal product : Prove that this production function exhibits diminishing marginal product in both and . This is not the same thing as decreasing returns to scale.
Evaluate leading international relations theories : Evaluate leading international relations theories and assess their utility in explaining significant international political processes or events.
What is the project average accounting return : what is the project’s average accounting return (AAR)?
Calculate tropical island real gdp : (i) Calculate Tropical Island's real GDP in 2015 and 2016 in terms of the base-year prices?
Summarize piagets stage theory in your own words : Demonstrate your understanding of the material in this course by developing a classroom plan for a preschool classroom, based on Piaget's Stage Theory.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Determining the overall trade balance

Given that a nation's trade balance is computed as Exports minus Imports, will an appreciating US dollar improve or worsen its overall trade balance?

  Industrialization to our economy and to society

What are the specific benefits and costs of industrialization to our economy and to society?

  Create the logic for the dice game pig

In this version of the game, when the computer does not roll a 1 and can choose whether to roll again, generate a new random value of 1 or 2. Use this value to decide whether the computer will continue to play or to pass the turn to the player.

  Explaining drain corporate budgets and ultimately profits

First of all it eliminates requirement of hardware, downloads and implementations which drain corporate budgets and ultimately profits. It takes companies only a third of the expenses that they will incurred to have their companies running.

  Body mass index program

You are the nutritional coach for a local high school football team. You realize that some of the players are not up to par having returned from summer break. Realizing nutrition plays a key in a productive team, you decide to implement a Body Mas..

  Decryption algorithm: reverse the encryption algorithm

Decryption algorithm: Reverse the encryption algorithm. The permutation, however, should (circular) shift the bit pattern by 1 bit to the right

  What is e[c], the expected value of c

What is E[C], the expected value of C?

  Write a c++ program that accepts this code as input

Write a C++ program that accepts this code as input. If code s is typed, a message directing the plant foreman to use the smaller generator should be displayed; otherwise, a message directing the use of the larger generator should be displayed.

  Expansionary policy and contractionary policy

Which means it control the the inflation of by different type stabilization polices such as expansionary policy and contractionary policy.

  Motivational strategies and techniques

Discussion responses should be on topic, original, and contribute to the quality of the discussion by making frequent informed references to lesson materials and Seminars. Respond in complete, well written sentences and paragraphs. Initial discuss..

  Find the derivative of each function

Find the slope of the tangent line to the graph of y = x2 + 2x + 3 at the point where x = 1.

  What is preemption

1) What is preemption? What is its purpose? 2) What is swapping? What is its purpose?

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!

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