Question 1

For each of the following production functions, determine whether they exhibit constant, decreasing, or increasing returns to scale.
a. Q = 4KL
b. Q = K1/3L2/3
c. Q = K1/3L1/3
d. Q = min(K, 4L)
e. Q = 6K + 3L

Accepted Answer

To determine returns to scale, we will e...

Question 2

The production function for laser eye surgery is given by Q = 20K0.5L0.5, where Q is the number of laser eye surgeries performed per day, K is the number of eye surgery machines (which is fixed at 2 in the short run) , and L is the number of employees. The marginal product of labor for L = 1 is ____.

Accepted Answer

A)   28.28
B)   11.71
C)   9.43
D)   8.99E) A) and C)
F) A) and D)

Exam 6: Producer Behavior

Correct Answer
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For each of the following production functions, determine whether they exhibit constant, decreasing, or increasing returns to scale. a. Q = 4KL b. Q = K^1/3L^2/3 c. Q = K^1/3L^1/3 d. Q = min(K, 4L) e. Q = 6K + 3L

Correct Answer
verified
To determine returns to scale, we will e...
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Exam 6: Producer Behavior

Correct AnswerverifiedShow Answer

For each of the following production functions, determine whether they exhibit constant, decreasing, or increasing returns to scale. a. Q = 4KL b. Q = K1/3L2/3 c. Q = K1/3L1/3 d. Q = min(K, 4L) e. Q = 6K + 3L

Correct AnswerverifiedTo determine returns to scale, we will e...View AnswerShow Answer

Correct Answer
verified

For each of the following production functions, determine whether they exhibit constant, decreasing, or increasing returns to scale. a. Q = 4KL b. Q = K^1/3L^2/3 c. Q = K^1/3L^1/3 d. Q = min(K, 4L) e. Q = 6K + 3L

Correct Answer
verified
To determine returns to scale, we will e...
View Answer