User Account

All Pages

Determine the nature of the return to scale as exhibited

Assignment Help Finance Basics
Reference no: EM131146669

The production function for a firm is given by Q = LK, where Q denotes output; Land K labor and capital inputs. Wage rate and rental rate are given by w and r respectively.

(a) Show whether or not the above production function exhibits diminishing marginal productivity of labor.

(b) Determine the nature of the Return to Scale as exhibited by the above production function

(c) Using the Lagrangean Multiplier method, calculate the least cost combinations of labor and capital and the resulting long run total cost function for the above production function. Explain the economic significance of the Lagrangean Multiplier and calculate its value.

(d) Using the above cost function, calculate the numerical value of long run total cost when Q = 225, w = 16 and r = 144.

Reference no: EM131146669

Questions Cloud

Why federal education policies are or are not consistent : The policies’ effectiveness in improving the quality of U.S. elementary and secondary education. (Justify your assessment by clearly explaining your definition of "effectiveness" and how it should be measured or determined.)Their consistency with the..
Determine the curb-line gradient from a to d : Using the grade stake elevations shown in the chart below, determine the cuts/fills (ft and in.) for stations B, C, and D.
Determine which video game endorsement offer best aligns : Pick your favorite restaurant. Analyze its current brand strategy and make one recommendation for changing or strengthening the existing brand strategy. From the case study, determine which video game endorsement offer best aligns with the Lebron Jam..
Examine the company current positioning strategy : Recommend a new marketing mix strategy based on any weakness(es) you discovered. Examine the company's current positioning strategy. Determine whether or not to change that strategy.
Determine the nature of the return to scale as exhibited : Determine the nature of the Return to Scale as exhibited by the above production function Using the Lagrangean Multiplier method, calculate the least cost combinations of labor and capital and the resulting long run total cost function for the above ..
What is fundamental principle of responsibility accounting : What is the fundamental principle of responsibility accounting?  List five important factors that should be considered in designing reports for a responsibility accounting system.  How soon should accounting reports be prepared after the end of the p..
Development of money in the economy and how it is used : Development of money in the economy and how it is used to create wealth. Include how unstable money can make an economy weaker.
Prepare a business project plan : Prepare a Business Project Plan. -The project plan aims to ensure you have an appropriate, achievable business project and sets down the key milestones that must be achieved within the term.
Explain your position what is the best way for an auditor : First consider the objectives of an audit in general when responding the following topic question. Given the Internet and the wide dispersal of information that exists today, should auditors also be held liable for users who were unknown to the audit..

Reviews

Write a Review

Finance Basics Questions & Answers

  Exchange rate changes can affect companies

Describe how exchange rate changes can affect companies' marketing, production, and financial decisions. Mention the various factors one follows in an attempt to predict market F/X value. Include in your answer the types of questions that would app..

  Business organizational forms subjects

1. Which of the following business organizational forms subjects the owner(s) to unlimited liability?

  Calculate the npv of the decision to change credit policies

The required return is 2.5 percent per period. Current Policy New Policy Price per unit $ 104 $ 108 Cost per unit $ 47 $ 47 Unit sales per month 3,240 3,295 Calculate the NPV of the decision to change credit policies.

  Review of budget document of state of tennessee

The question is from Finance and it is about Review of Budget document of State of Tennessee, United States. This is part of Government Finance Officers Association as well as Distinguished Budget Presentation Award Program or Budget Awards Progra..

  Accounting equation of the particular fund

Perez County entered into a number of transactions for the current fiscal year. Identify the fund or funds affected by each transaction and determine how each transaction will affect the accounting equation of the particular fund.

  What a business or government agency would need to consider

Write an essay in which you evaluate what a business or government agency would need to consider before transferring a hardy but non indigenous species to another country.

  Computing the value of bond based on rate of returns

Computing the value of bond based on rate of returns and What two reasons cause the required return to differ from the coupon interest rate

  Prepare an income statement from the following information

prepare an income statement from the following information sales 500000- administrative expenses 100000- interest

  How much will abc pay for the iron

ABC Corp. (an American company) has contracted to buy 50,000 tons of iron from a German firm. Suppose that iron trades for 87 euros/ton and the exchange rate is .67USD/E when the payment is due. How much (in terms of USD) will ABC pay for the iron..

  Determine the net pretax benefits to tec of using a wire

Determine the net (pretax) benefits to TEC of using a wire transfer payment system if monthly payments from each customer average: a. $25,000 b. $50,000

  To help finance a major expansion castro chemical company s

QUESTION 1 To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,175, and has a par value..

  A project has an initial cost of 52125 expected net cash

a project has an initial cost of 52125 expected net cash inflows of 12000 per year for 8 years and a cost of capital

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