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

Derevatives ., how to solve problems using derivatives ?

how to solve problems using derivatives ?

Estimating economic relationships, Estimating economic relationships M...

Estimating economic relationships Managerial economics estimates economic relationships between various business factors likeelasticity of demand, income, profit analysis, cos

Elasticity of demand, a. Explain why the demand for a particular brand is m...

a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast

To what extent has the imf achieved its objectives?, To what extent has the...

To what extent has the IMF achieved its objectives? The objective of achieving full convertibility of currencies has not been achieved.  In the first place countries impose re

Asset market theory in environment and development, what is asset market th...

what is asset market theory theory in environmental economics?

Discuss quantity demanded and supplied , Supply and Demand Discuss and...

Supply and Demand Discuss and analyze following statement: The Wall Street Journal reported that recent law school graduates were having a very difficult time obtaining jo

Short-run equilibrium, SHORT-RUN EQUILIBRIUM All firms are assumed to ...

SHORT-RUN EQUILIBRIUM All firms are assumed to aim at maximizing profits or minimizing losses.  The monopolist controls his output or price, but not both. The monopoly maxi

Explain about the marginal analysis, Explain about the marginal analysis. ...

Explain about the marginal analysis. The optimal quantity of an activity is the level which produces the maximum probable total net gain. The principle of marginal analysis

Quantitative Analysis, How has quantitative analysis changed the current sc...

How has quantitative analysis changed the current scenario in the management world today? Focus must be on the business world specifically in the context of Asian Countries.

Economics of population, The Economics of Population Population issues...

The Economics of Population Population issues became matters of economic concern when it became increasingly apparent that the problem of excess population may be a serious ob

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