User Account

All Pages

Does the production function exhibits increasing returns to

Assignment Help Microeconomics
Reference no: EM13337809

1. A farmer uses M units of machinery and L hours of labor to produce C tons of corn.

A) Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or constant returns to scale? Explain your answer.

Reference no: EM13337809

Questions Cloud

How would a substantial appreciation in the european euro : How would a substantial appreciation in the European euro in the foreign exchange market affect the quantity of imports of European products by the U.S.? How would such an appreciation of the European euro affect travel by Americans to Europe?
How large a tax cut would be needed to achieve this same : Assume that a hypothetical economy with an MPC of .7 is experiencing severe recession. By how much would government spending have to increase to shift the aggregate demand curve rightward by $30 billion?
How would you describe this situation and what would you : If the current price of the product is $150, what is the quantity supplied and the quantity demanded? How would you describe this situation and what would you expect to happen in this Market?
What is the point price elasticity of demand at this price : Suppose that the demand for gasoline is given as P = 3.6-0.002Q where P is the price of gasoline in $ per litre and Q is liters of gasoline per day. If you know that current price of gasoline is $1.3,
Does the production function exhibits increasing returns to : Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or constant returns to scale? Explain your answer.
Net taxes affect consumption via disposable income : Net taxes affect consumption via disposable income. Do you think that net taxes could affect any of the other components of aggregate expenditures? If yes, explain how.
What is the cost of producing 10 units in the short run : Currently, K = 100. What is the cost of producing 10 units in the short run? Hint: first determine how much labor is needed.
What should be the size of the tax per pact of cigarettes : Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $5 and the government wants to put a tax on it to reduce asmoking by 20%, what should be the size of the tax per pact of cigaret..
Why does not a political equilibrium lead to efficiency in : Why does not a political equilibrium lead to efficiency in the way that equilibrium in private goods markets does?

Reviews

Write a Review

Microeconomics Questions & Answers

  Question about price elasticity of demand

If the demand for corn rise due to its use as an alternative energy source, what will happen to supply of corn's substitute such as soybean?

  Discuss three ways in which you may interact with colleagues

Discuss the roles and responsibilities of three other professions in the health sciences. Discuss three ways in which you may interact with colleagues in other professions. List and describe several things you could do to prepare yourself to interact..

  What factors other income are likely to affect willingness

Is it price discrimination when a professional football team charges say,$150 per ticket for 50-yard-line tickets in the lower deck and $50 per ticket for upper-deck tickets overlooking the end zone

  What is velocity if the money stock equals

Real GDP equals 5000, nominal GDP equals 10,000 and the price level equals 2, then what is velocity if the money stock equals 2000?

  What is the absolute pressure at the top of the tank

A solar-water heating system uses solar panels on the roof of a large build, 40.0 m above the storage tank. The pressure at the panels is 1 atmosphere. What is the absolute pressure at the top of the tank?

  Solve for the equilibrium wage and the quantity of employmen

Assume that the government imposes a $20 minimum wage. Find the new quantity of labor demanded and supplied.

  What is the expected value of each lottery

utility if a function of income (I), given by: \(U = 101\) as long as I is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with ce..

  How does heckscher-ohlin theory differ from ricardian theory

How does the Heckscher-Ohlin theory differ from Ricardian theory in explaining international trade patterns and the theory demonstrates how trade affects the distribution of income within trading partners. Explain.

  Budget sets and full price elasticity

Draw the impact of this illness on the equilibrium de?ned in exercise 5. How will it change his equilibrium allocation of earnings and labor-leisure?

  Explain how your reading and experience supports materialism

These are dualism, materialism, idealism and alternative views. Of the four modern metaphysical ideas, which seems most logical to you Briefly define the view you selected and explain how your reading and experience supports it.

  Define the economic profits of the drug dealer

particularly on the retail end where drug dealers sell the drug to consumers in the U.S. What would you predict would happen to the economic profits of the drug dealer? Suppose the family in South America form a cartel What is the result of the ca..

  Compute the expected value and the standard deviation

Compute the expected value and the standard deviation of this investment. Is this investment risky? Why?   The equation E(x)=359 + 0.5SD describes the indifference curve of this investor. Is this investor risk averse, risk neutral, or risk loving? ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd