Suppose that the following Cobb - Douglas production function represents the economy of Malaysia: Y F K, LAK 0.3L0.7. Assuming output, capital and labour to be RM10 trillion, RM8 trillion and 20 million workers respectively, (a) Calculate the marginal product of labour (b) Calculate the marginal product of capital(c) Does theabove-mentioned production function exhibit constant returns to scale? Please provide reasoning to support youranswer.

Let's first clarify what is meant by returns to scale. Returns to scale describe how a production…

Answered: Suppose that the following Cobb -…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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Similar questions

Does the production function 50 q = 1000L - K exhibit increasing, decreasing, or constant returns to scale? This production function exhibits returns to scale.
Do the following production functions exhibit increasing, constant, or decreasing returns to scale? Provide calculations supporting your answers.
The Cobb-Douglas production function is given by Y = AK" L-. Here a is a given parameter that satisfies 0< a< 1. The marginal product of capital is and shows Douglas production function displays and the level of output returns to capital. The Cobb- per worker can be written as a function of the level of Oa: diminishing marginal; constant returns to scale; technology a: diminishing marginal: increasing returns to scale: capital per worker ai diminishing marginal; constant returns to scale; capital per worker (1 - a) : increasing marginal; decreasing returns to scale; capital per worker
please answer the following, I have attached an image of the question for better format. Thanks! 2. Suppose that the production function of a country is given by Y=K3L0.7, where Y is output, L is labour, and K is capital. a)What is the return to scale property of the production function? B)What will happen to output if we double the use of capital and labour? C)Write the production function as a relationship between output per worker and capital per worker.
What are the steps to solve for K in terms of L. Given a production function of Q = 2KL, and Q is 16, how do i solve and what are the steps to solve for K in terms of L. What if Q is 32? 64? Just algebra not calculus please.

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