Home / Questions / Which of the following production functions exhibits constant returns to scale
Which of the following production functions exhibits constant returns to scale?
A. Q = K^{1/2}L^{l/2}
B. Q = K^{l/2}L^{2/3}
C. Q = K^{l/4}L^{l/3}
D. Q = K/L
42.For most production function in the short-run output will ___________ if equal amounts of the variable input are added and all other inputs are held fixed.
A. increase at a decreasing rate
B. decrease at an increasing rate
C. decrease
D. increase
43.Suppose you are using 10 units of labour in your short-run production process. At this point, the average product of your labour is 10, and the marginal product of the last unit of labour was 14. Given this, we know that the:
A. average product of labour must be increasing
B. average product of labour must be decreasing
C. marginal product of labour must be increasing
D. marginal product of labour must be decreasing
44.Suppose that at a firm's current level of production the marginal product of capital is equal to 10 units, while the marginal rate of technical substitution between capital and labour is 2. Given this, we know the marginal product of labour must be:
A. 5
B. 20
C. 10
D. It is not possible to say with the information given in the problem
45.In the production of bicycles an increase of 2 percent in the level of capital and labour respectively will generate an increase of 1 per cent in the production of bicycles. From this information we know that the production of bicycles exhibits:
A. diminishing marginal returns
B. decreasing returns to scale
C. increasing returns to scale
D. constant returns to scale
46.(Appendix) Suppose the production function for widgets is Q = (KL)^{½}. If capital is fixed at 4 units, what is the marginal product of labour when you produce 10 units of output?
A. 0.4
B. 1
C. 1.5
D. 0.2
47.Sketch graph a standard short-run production function, and identify on it the points where the average product peaks, the marginal product peaks, the marginal product reaches zero, and the average and marginal product intersect.
Feb 11 2020 View more View Less
The voltage from a 0 kg-to-5 kg strain gage balance scale has a corresponding output voltage range of 0 V to 3.50 mV. The signal is recorded using a new 16 bit A/D conver...
Jul 26 2020Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equ...
Apr 06 2020Which herbal plant is used to destroy intestinal worms?
Jul 13 2021he dividends of GAMA Corporation are expected to grow at a constant 3% per year. The stock offers an expected total return of 8%. The dividend yield must be: a)11.00%b)8....
Aug 16 2021The inverse sine, inverse cosine, and inverse tangent functions have the following domains and ranges.(a) The function has domain _____ and range _____.(b) The function h...
Jul 08 2021The solubility of hydrogen gas in steel in terms of its mass fraction is given as wH2 2.09 × 10-4 exp(–3950/T)P where PH2 is the partial pressure of hydrogen in bars and...
Jul 19 2020Serenity Garden Inc. produces and sells a variety of garden accessories. One of the product lines the company makes is un painted gnome statues that come in three sizes: ...
Apr 20 2018Tube Flow for the Oldroyd 6-Constant Model, find the mass flow rate for the steady flow in a long circular tube 6 using Eq. 8.5-3.
Jul 25 2020DBMS periodically suspends all processing and synchronizes its files and journals through the use of (a) Checkpoint facility (b) Backup faci...
Dec 27 2017It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital pra...
Aug 10 2020