Microeconomics, Econommics Assignment homework Help

User Generated

wbrlmk

Economics

Description

Need correct and detailed answers to all of these questions. Please only bid if you know how to do these questions and are sure your answers will be correct.


Thanks 

Unformatted Attachment Preview

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Here is the word file for the solutions.
Please feel free to contact me for any clarifications.

1
Question 1:
The production function is q= 2L2/3k1/3. This tells us the maximum volume of output
a firm can produce with its quantities of inputs. There are 2 inputs: labor (L) and
capital (k). The volume of the output is represented by q.
In this production function, the labor is raised to the 2/3 powers and capital to the
1/3 power, representing two positive values. The production function therefore,
exhibits a constant return as long as the labor and capital remain constant to scale. If
l and k represent the same value x, then L2/3t1/3 or x2/3x1/3 = x. Therefore, whatever
value is replaced by x is considered separate situation and will represent the ratio or
increase.
For example, if labor (L) = 8 and capital (k) = 8, q = 2 (82/3)(81/3)= 2 x 8 = 16
If labor (l) = 64 and capital (k) = 64, q = 2 (64) 2/3(64) 1/3=2 x 64 = 128.
The labor and capital both increased by 8 times and so did ...


Anonymous
Goes above and beyond expectations!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags