Match the multi-variable function on the left with the scale property. Q(K.L) =4K1.5L1.5 A Decreasing returns to scale B. Increasing returns to scale Q(K.L)=4K0.6L0.4 C. Constant returns to scale Q(K.L)=2K04L0.3

Match the multi-variable function on the left with the scale property. Q(K.L) =4K1.5L1.5 A Decreasing returns to scale B. Increasing returns to scale Q(K.L)=4K0.6L0.4 C. Constant returns to scale Q(K.L)=2K04L0.3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What is the ethics and accountability in public service and governance? Discuss its important and…

A: In the case of governance accountability is considered as morals and administration, in comparison…

Q: Discuss why the expectations-augmented Phillips curve can explain what has happened to the…

A: According to the Phillips curve, inflation and unemployment are inversely related: as unemployment…

Q: Suppose that the government is going to auction off permits equal to one third of total emissions in…

A: The cost that measures the cost of reduction of more environmental negative like pollution units is…

Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…

A: Average total price is called the sum general of all manufacturing prices divided with the aid of…

Q: The graph below shows the efficient contracts and the contract curve. a. Explain the relationship…

A: (A) Contract bend address different mixes of two products allotted between two groups or customers…

Q: Below are some data from the productions of milk and honey. a) Compute nominal GDP, real GDP, and…

A: Year Price of milk Q of milk Price of honey Q of honey 2010 $2 15000 $5 2500 2011 $2.15 16250…

Q: Suppose that a small-town theater has six potential customers and is looking to implement price…

A: A potential customer is an individual who has requirements and desires which can be fulfilled by…

Q: Which of the following policies would the Federal Reserve most likely use if the economy was…

A: When the economy is experiencing an inflationary gap (or high inflation), then there is a need to…

Q: 2(b)There are three people and two goods in an economy. The utility given below: U1 = X11X 12 U2 =…

A: Marginal rate of substitution refers to the rate at which one good can be substituted with other…

Q: Consider the following game in strategic form. f h e a 8,2 b| 10,5 c| 1,4 d 6,6 7, 10 4,8 1,9 3,1…

A: For a player, a Dominant strategy gives equals or less than compared to other strategies.

Q: Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered…

A: Given, First Cost : $250,000Annual Benefits : $73,000 in the first year and decreases by $1,200…

Q: 45. Use the graph to answer the question that follows. Which of the following can cause the…

A: Answer is given below

Q: The stated annual rate of interest is referred as __________. a. Classified rate b. Marginal rate c.

A: Question, The stated annual rate of interest is referred as __________. a. Classified rate b.…

Q: The cost to produce x units of wire is C=25x+600, while the revenue is R=40x. Find all intervals…

A: Break even point occurs where Total revenue is equal to total cost . Where firm recovers all cost…

Q: 25. Ms. Bates purchased an annuity contract that pays her $120 per month beginning March 1, 2020.…

A: The income is basically the total amount calculated when the costs are reduced from the revenues.…

Q: What could the remedy be in this case? Could the buyer even have a right to compensation, even if…

A: The International Sales Contract Advisory Council (CISG-AC) has the responsibility of governing…

Q: Wayne won $100,000 on a LottoMax ticket and now he wants to buy a Mercedes. Wayne's willingness and…

A: Wayne has accumulated a wealth of 100000 and now he wants to buy Mercedes with that money

Q: TYPEWRITTEN ONLY PLEASE FOR UPVOTE. DOWNVOTE FOR HANDWRITTEN. DO NOT ANSWER IF YOU ALREADY ANSWERED…

A: Inflation means the rise in the price level of goods and services over a period of time. It reduces…

Q: Nikki owns a business that imports several types of products from countries that have poor economic…

A: If there are more employment opportunities available then this may lead to improve the economic…

Q: 3. Derive and explain the Marshall-Lerner condition. If the Marshall-Lerner condition does not hold,…

A: A Marshall-Lerner condition is a concept that emphasizes the relationship between a country's…

Q: It approximates present value of what will be received through ownership of property, including…

A: At the marketplace, present value of a specific asset can be determined in different ways such as…

Q: Explain how the development of railroads led to the integration of global wheat markets in the…

A: Main rationale for Market Integration: A market (rather than coordinates) is used to bridge the cost…

Q: Consider a firm in an oligopoly in which a few sellers offer differentiated brands of widgets.…

A: P = 12 - 0.5Q (P>10) P = 14 - Q (P<10)

Q: price of quantity of honey 2,500 price of quantity year milk of milk honey 2010 $2.00 15,000 $5.00…

A: We are going to find nominal and real GDP to answer this question.

Q: Two oligopolistic firms have to decide on the pricing strategy. Each can either choose either a high…

A: Dominant strategy is a strategy that gives maximum payoff to a player irrespective of what other…

Q: It asks for modified B/C ratio.

A: The formula for calculating an annual payout, A=Pi1+in1+in-1 Here, P is the present value, n…

Q: PROBLEM NUMBER 1 A farmer can plant up to 8 acres of land with wheat and barley. He can earn…

A: A company's optimal point is when it is producing a large amount of items at the lowest feasible…

Q: The price-demand equation, D(x), and the price-supply equation, S(x), of a Slow Cooker are given…

A: Since you have posted a question with multiple subpart, we will solve first three subpart for you.…

Q: 2. The Lorenz curve of a particular society is given by L(x) = Ax? + Bx. Suppose that the poorest…

A: 2) The Lorenz curve depicts how money (or wealth) is distributed throughout an economy.It was…

Q: A: it is considered no fault coverage even if the insured is party responsible for loss B: it is…

A: The answer is - D. Workers' Comp Covers medical benefits at a limit of $1,000,000 per worker

Q: Consider the following economy with two goods, x and y, and two consumers, A and B. The tastes of…

A: Pareto -efficient points refers to those equilibrium points deviating from which no person can be…

Q: Suggest solutions to the three major weaknesses of the New Classical Theory.

A: New classical approach Robert Lucas, T. Sergeant, and others developed it in an attempt to change…

Q: Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been…

A: "CPI is computed by multiplying 100 by the ratio of basket's cost in the particular year to the…

Q: Bob's lawn mowing service is a profit maximizing, competitive firm. Bob mows lawns for $27 each. His…

A: A competitive firm is one of many firms producing identical goods.

Q: The economy of HOYA has a spending mulipilier of 4. Based only on this information, we know that in…

A: The multiplier refers to how much change in the injection in any economy increases the level of…

Q: Consider the scenario where you are the Chairperson of the Federal Reserve Bank. The US economy is…

A: inflation is the situation where general average price level increases over period of time .…

Q: 3. If we place a price ceiling of $3, do we have a surplus or shortage? By how much? Label producer…

A: Equilibrium is achieved at the output level where Qs equals Qd. Thus required equilibrium output is…

Q: Assume that investment spending is no longer affected by output but only by interest rates. Given…

A: Here, it is given that investment spending is only affected by the change in interest rate as a…

Q: According to principles of behavioral economics, we as human beings tend to put undue weight on…

A: Short-term advantages are those that may be acquired right away, but long-term benefits take a…

Q: 1. What does Gross Domestic Product mean? Why do we need to use market value GDP? What for do we use…

A: "Gross domestic product is represented by GDP."

Q: Suppose that the demand for DVD players is given by QP=400-4P, where Q is the quantity demanded per…

A: Given demand function Q(P)=400-4P And P=50

Q: On Jan. 1, 2021, OZARK Corporation entered into a P5,000,000 IRG 1-10, 9% contract with its bank.…

A: Investment is the process of accumulating money and lending it to a firm or producer at a certain…

Q: explain the measures companies could take to overcome trade barriers

A: Trade barriers are the agreements or policies between two or more nations to limit imports and…

Q: 2. A bridge connecting two towns costs $15,000,000, has an average annual operating cost of $450,000…

A: The measure that depicts the expected stream of income that is determined on the date of valuation…

Q: Time remaining: 00:09:21 Economics QA and QS are the pollution levels for Arrow and Solow…

A: An externality is a cost that is bear by the third party who is involved in the transaction of an…

Q: Essay Problem 1. There is $9,000,000 of curency in Colnland, which are all held by the Bank of Coco…

A: Answer: Given, Total currency held by Coco Bank = $9,000,000 Desired or required reserve ratio = 0.2…

Q: c) Suppose a crisis in consumer confidence decreases autonomous consumption to $100. Show…

A: Full employment level is achieved where LRAS=AD = SRAS . beyond the level of Full employment output…

Q: For each scenario listed below, start by drawing a fully-labeled Aggregate Supply-Aggregate Demand…

A: Answer a. When the federal government spends more on national defence, the aggregate-demand curve…

Q: Stock Market Prices: Demand and supply in Action Firms that are quoted on the stock market can raise…

A: A stock market, sometimes also known as an equity market or a share market, is a place where buyers…

Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

Match the multi-variable function on the left with the scale property.
Q(K.L)=4K1.5L1.5
A. Decreasing returns to scale
B. Increasing returns to scale
Q(K.L) =4K0.010.4
C. Constant returns to scale
Q (K,L) =2K0.4L0.3

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Isoquants have a v slope and, for Cobb-Douglas production functions, are The MRTS is v and is the v of the slope of the isoquant.
A company produces commercials. A 2-minute commercial, for example, needs exactly 5 minutes of filming and 8 minutes of editing. Let x1 denote the minutes of filming and x2 denote the minutes of editing. a) Write down the production function and state whether it has increasing, constant, or decreasing returns to scale b) Suppose that filming costs $45 per minute and editing costs $10 per minute. To produce a 5-minute commercial, how many minutes of filming and how many minutes of editing is needed to minimize cost? c) Suppose that filming costs w1 per minute and editing costs w2 per minute. Let y denote the length (in minutes) of commericals produced. derive the conditional factor demand functions x1(w1,w2,y) and x2(w1,w2,y) and its cost function c(w1,w2,y)
Ignore increasing returns to scale and select constant returns to scale as well as decreasing returns to scale.
Q2. Determine the returns to scale of the following production function: Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminate
Draw the isoquant map, be precise for at least one isoquant line, carefully determine the gaps between each level of output (i.e. show at least 3 gaps). You must show your work. f(K,L) = K2L2
You are given the following long-run cost function: TC = 150Q - 20Q2 + 1.8Q3 What level of Q will economies of scale ends and diseconomies of scale begin?
Determine the returns to scale of this production function: F(x1, x2) = [xỉ + x3]!/2 %3D A. Constant return to scale B. Increasing return to scale C. Decreasing return to scale
Q5 A firm makes beer and its cost function is C(q) = 4+q². Are there economies of scale?
For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale b.Decreasing Returns to Scale c.Increasing Returns to Scale d.Zero Return to Scale
please analyze the behavior of cost function and interpret the constant term in the expression of C(q)
Q2. Determine the returns to scale of the following production function: Hand written plzz Y = 5K0.5 +3L0.5 (a) constant (b) increasing (c) decreasing (d) indeterminate
12. Which of the following production function shows decreasing returns to scale? (a) f(r) = min{x1, 12}. 1/4 (b) f(z) = xỉ + x}/2 1/4 1/2 (c) f(x) = r1 + xj"x (d) f(x) = VE +a3.