returns to scale, Managerial Economics

Assignment Help:
A company uses 2 inputs, K and L in its production function. The production function is given as
where Q, K and L are in units per week. Price of input K per unit is RM100, and input L per unit is RM20.
(a) Determine the type of returns to scale.
(b) How many units of output will be produced per week if the company uses 20 units of K and 15 units of L?
(c) Is the above combination of inputs K and L efficient?
(d) If not, what is the efficient combination of K and L?
(e) Compare the total cost for both input combination in parts (c) and (d).

Related Discussions:- returns to scale

Legal sanction - sources of monopoly, Legal Sanction: A monopoly as stated ...

Legal Sanction: A monopoly as stated above may be the result of a government sanction. The government of a country may legally permit a private monopoly or monopoly in the public s

Factors affecting the ability of trade unions, FACTORS AFFECTING THE ABILIT...

FACTORS AFFECTING THE ABILITY OF TRADE UNIONS TO GAIN LARGER WAGE INCREASES FOR ITS MEMBERS The basic factor is elasticity of demand for the type of labour concerned.  The ela

Cross elasticity, Cross Elasticity Cross elasticity of demand measures...

Cross Elasticity Cross elasticity of demand measures the degree of responsiveness of the quantity demanded of one good (B) to changes in the price of another good (A).  It is

Expected price per product, Airbus Boeing Deman...

Airbus Boeing Demand P = 182.868 - 0.0003Q P = 198.6592 - 0.00013Q TVC Curve TVC = 104.8822Q - 0.001Q^2 + 0

Asset market theory in environment and development, what is asset market th...

what is asset market theory theory in environmental economics?

Diseconomies of scale, what are the four factors that lead to diseconomies ...

what are the four factors that lead to diseconomies of scale.

Causes of inflation, Causes of Inflation   At present three main expl...

Causes of Inflation   At present three main explanations are put forward: cost-push, demand-pull, and monetary. Cost-push inflation occurs when he increasing costs of prod

Permanent income hypothesis, What is the Permanent Income Hypothesis? What ...

What is the Permanent Income Hypothesis? What is the theory's potential relevance for assessing the effects of temporary tax cuts for the purpose of fiscal stimulus? If you were

Uses of production function, The production function can have many uses. It...

The production function can have many uses. It can be used to compute least-cost factor combination for a given output or maximum output combination for a given cost. Knowledge of

The contributor of economics, who are the contributors in economics and wha...

who are the contributors in economics and what they contribute in economics

Write Your Message!

Captcha
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