Does the production function exhibit diminishing returns

Assignment Help Microeconomics
Reference no: EM13126997

Suppose that the production function for a commodity is given by Q = 10√LK

Where Q is the quantity of output, L is the quantity of labor, and K is the quantity of capital. (a) Calculate Q when L=1 and K=1, and L=2 and K=2, then indicate whether this production function exhibits constant, increasing, or decreasing returns to scale. (b) Given K=1, show the change in Q if L changes from 1 to 2, and 2 to 3, and does the production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?

Reference no: EM13126997

Questions Cloud

Calculate the mass of ice : Consider a glass of 171 mL of water at 29°C. Calculate the mass of ice at -15°C that must be added to cool the water to 10°C after thermal equilibrium is achieved.
Balance and do total net ionic equations : If doing by hand, please write dark onpaper before scanning. Balance and do total net ionic equations
Deferred tax expense : The enacted tax rate increased to 30 percent in Year 2 compared to an enacted rate of 20 percent in the prior year. At December 31, Year 2, the company would record a deferred tax expense of:
Identify the limiting reagent : The equation for the complete combustion of ethene (C2H4) is C2H4(g) + 3 O2(g) ==> 2CO2(g) + 2H2O(g) If 2.70 mol C2H4 is reacted with 6.30 mole O2,
Does the production function exhibit diminishing returns : Show the change in Q if L changes from 1 to 2, and 2 to 3, and does the production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?
The rate constant increases by a factor : The rate constant increases by a factor of 2.00 when the temperature is increased from 80 C to 115 C. estimate the arrhenius activation energy.
Enacted tax rate-current and future periods : The enacted tax rate is 25% in current and future periods. What will White record as its income tax expense in Year 1?
How many workers should ms smith hire : how many workers should Ms. Smith hire? (Ms. Smith should hire workers as long as their marginal revenue product (MRP) exceeds their marginal resource cost
What is the volume in liters of ethylene glycol : Ethylene glycol, antifreeze, has a density of 1.11 g/cm^3.a. What is the mass, in grams, of 410 mL of ethylene glycol?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Explain three basic trade-offs

If Microeconomics is considered to be study of scarce resources. In which customers must make allocation decisions. These 3-basic trade offs include which products or services are to be manufactured

  Impact on demand in a competitive market

Determine what effect should each of following have upon demand for profitable music players in a competitive market?

  New demand curve of chevrolet

Find the equation of the new demand curve for Chevrolets. Plot the new demand curve, D1 c' and, on the same graph, plot the curve for Chevrolets, D c'. found in 2 (d).

  Cost curves in perfect competition industry

Catfish farming in Louisiana is a perfect competition market. Hence, customers of catfish are getting their catfish at the minimum cost per unit of manufacturing catfish, and they are very happy.

  Elasticity of demand

The government wants to decrease the consumption of electricity by 10 percent. The price elasticity of demand for electricity is -0.4.

  Define consumer surplus, and gi en good

Define the term Consumer surplus, Gi en good and Income elasticity of demand using graph and equation.

  Develop production from the opportunity

Demonstrate that the expression on the right in fact represents the sum of the series on the left, Draw an appropriate cash flow diagram and indicate the formulas and factors used to evaluate the cash flow diagram

  Advice recommendation to the president

Your task is to take this advice and produce your own recommendation to the President. Do not simply choose one person's advice, but pick and choose from each recommendation that you receive.

  Increase-decrease in money supply

Assume the Fed decides to buy $1 billion in Treasury bonds from the public. Suppose that the reserve requirement is 10%. What takes place to the interest rate and money supply?

  Absorption and variable costing methods on income statement

Write down the differences between absorption and variable costing techniques on income statement presentation.

  Pigouvian tax-externalities

The private marginal benefit for commodity X is given by 10 - X where X is the number of units consumed. The private marginal cost of producing X is constant at $5. For each unit of X produced, an external cost of $2 is imposed on members of socie..

  Total production will increase at a diminishing rate

The present value of the gain from employing the new factory must be less or equal to $50 million and the rate of return from the new factory must be greater than 7%.

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