The function has constant returns to scale

Assignment Help Business Economics

Reference no: EM131424639

Consider the following production function Y = F (K, L, H) = K^1/2 L^1/4 H^1/4, where Y is total output, K is physical capital, H is human capital and L is labor. Show that the function has constant returns to scale.

Reference no: EM131424639

Questions Cloud

What is the pure-strategy nash equilibrium : Consider a population of voters uniformly distributed along the ideological spectrum from left (x = 0)to right (x = 1). Each of the candidates for a single of?ce simultaneously chooses a campaign platform (i.e., a point on the line between x=0 and x=..

Political environment can impact global marketing activities : Discuss some of the important business issues that can cause legal problems for global marketers. What are some of the elements of a country's political environment can impact global marketing activities?

How have the two political cultures of texas : How have the two political cultures of Texas, individualism and traditionalism, been reflections classical liberalism and social conservatism?

Helping the environment : Helping the Environment: Find a recent article discussing an innovative way in which a corporation is helping the environment. Explain why the method is innovative and whether you believe the method will really help the environment or will only help ..

The function has constant returns to scale : Consider the following production function Y = F (K, L, H) = K^1/2 L^1/4 H^1/4, where Y is total output, K is physical capital, H is human capital and L is labor. Show that the function has constant returns to scale.

Define Q as the quantity required next year : You are considering opening a small copy shop. It costs $5000 to rent a copier for a year, and it costs $0.03 per copy to operate the copier. Other fixed cost of running the store will amount to $400 per month. Define “Q” as the quantity (number of c..

The budget constraint : Suppose a person has $8 to spend only on apples and bananas. Apples cost $.04 each and bananas cost $.01 each. Furthermore, his preferences for apples (A) and bananas (B) can be represented by U = the square root of AB. Give the budget constraint, wh..

Determine the impact on the fitness-club market : For parts a through d of this problem, state whether demand or supply will change (only one will change in each case). State whether the equilibrium price and quantity will rise or fall in the indicated market as a result of each change described. Af..

The phrase the best of all possible worlds : According to Matchek, the phrase "the best of all possible worlds" applies to a state of equilibrium, which doesn't exist in the world as we know it. According to Matchek, one of the reasons people tend to take the role of entrepreneurs for granted i..

User Account

All Pages