returns to scale, Managerial Economics

Assignment Help:
A company uses 2 inputs, K and L in its production function. The production function is given as
where Q, K and L are in units per week. Price of input K per unit is RM100, and input L per unit is RM20.
(a) Determine the type of returns to scale.
(b) How many units of output will be produced per week if the company uses 20 units of K and 15 units of L?
(c) Is the above combination of inputs K and L efficient?
(d) If not, what is the efficient combination of K and L?
(e) Compare the total cost for both input combination in parts (c) and (d).

Related Discussions:- returns to scale

Write about international economic integration, Write about International e...

Write about International economic integration of the Republic of Moldova

Healthcare economics, I was given a few spreadsheets and asked to do an inc...

I was given a few spreadsheets and asked to do an income, balance and cash flow statement. It''s a lot of info and I have no idea what I''m doing

Describe the managerial functions, Describe the Managerial functions A ...

Describe the Managerial functions A manager has to take numerous decisions that conform to the objectives of the firm. Several business decisions fall prey to conditions of ris

cournot equilibrium, Air Canada and KLM compete for customers on flights a...

Air Canada and KLM compete for customers on flights among Amsterdam and Toronto. The total number of passengers (Q) flown by these two firms is the sum of passengers who fly KLM, Q

Revenue, definition of total revenue,marginal revenue,average revenue

definition of total revenue,marginal revenue,average revenue

Digressive tax, DIGRESSIVE TAX A tax is called digressive when the hig...

DIGRESSIVE TAX A tax is called digressive when the higher incomes do not make a due contribution or when the burden imposed on them is relatively less. Another way in which

Explain managerial decision-making, Question 1: (a) Describe how asymme...

Question 1: (a) Describe how asymmetric information influences the price system and resource allocation. Provide examples to support your answer. (b) Managerial decision-ma

Price wars, on the application of any of the concepts learnt in Managerial ...

on the application of any of the concepts learnt in Managerial Economics. You may try to use these concepts to everyday problems in life or in any of the current debates on in the

Realism of perfect competition, REALISM OF PERFECT COMPETITION The ass...

REALISM OF PERFECT COMPETITION The assumptions of perfect competition are obviously at variance with the conditions which actually exist in real world markets.  Some market

Write Your Message!

Captcha
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