Which of the following production functions exhibit decreasing returns to scale? Select all that apply. OQ= : 2K04 10.6 OQ=0.5 K0.3 0.7 OQ=0.7 K0.4 0.3 OQ=K0.25 L0.5 Q=0.3 K0.5 L0.7 Q=0.2 K0.3 0.8
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- The production function for the automotive and parts industry is q=L0 25 K0.16 M0.59 where M is energy and materials (based loosely on Klein, 2003). What kind of returns to scale does this production function exhibit? This production function exhibits constant returns to scale. The marginal product of materials, MPM, is O A. MPM = 0.59(q/M) O B. MPM = 0.59L0 25 K0.16M - 0.41 MPM =L0 25K0. 16MO.59 O D. both a and b. O E. all of the above.12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1, 12}. 1/4 (b) f(z) = xỉ + x}/2 1/4 1/2 (c) f(x) = r1 + xj"x (d) f(x) = VE +a3.Which of the following production functions represent increasing returns to scale? 1. f(K, L) = 2K + 3L II. f(K, L) =[K¹/² + [¹/2]³ III. f(K, L) = min{4K, L} IV. f(K, L) = 5KL-K²/2 - 1²/2 (1) only (II) only (II) and (IV) All of them (1) and (III)
- For the production function Qs = K0.4L0.1 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale b.Decreasing Returns to Scale c.Increasing Returns to Scale d.Zero Return to ScaleSuppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
- Suppose that Jump A Lot Inc. can produce 12 trampolines a day for a total cost of $1,840. If technology and input prices remain the same and total cost increases to $3,680, what must be the new quantity of output per day under conditions of a) constant returns to scale (Click to select) b) economies of scale (Click to select) c) diseconomies of scale ✓ (Click to select) output increases to more than 24 output increases to less than 24 output increases to 24Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph T PL, APL, and MPt. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (ii) the maximum value of M PL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…Does this production function q = 9K0.8L0.1 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
- QUESTION 1 For the production function Qs = | K0.8 0.3 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).Both capital and labor are variable inputs. Suppose the wage rate of labor is 16 (per hour) and the rental price of capital is 20 (per hour). The downward sloping smooth curves that bend in towards the origin are a firm's isoquants. The downward sloping straight lines are isocost lines. If the ferm plans to produce 20 units of output lper hour), its minimized cost is Capital slope=-0.8 (6,5.5) (4,5) (2,3) q=30 q=20 q=10 Labor O 180 O 160 O 164 O 122Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminate
