The Cobb-Douglas production function is given by Y = AK" L-.Here a is a given parameter that satisfies 0< a< 1. The marginal productof capital is and showsDouglas production function displays and the level of outputreturns to capital. The Cobb-per worker can be written as a function of the level ofOa: diminishing marginal; constant returns to scale; technologya: diminishing marginal: increasing returns to scale: capital per workerai diminishing marginal; constant returns to scale; capital per worker(1 - a) : increasing marginal; decreasing returns to scale; capital perworker

(1-a) Y/K; increasing marginal decreasing returns to scale capital per worker.

Answered: The Cobb-Douglas production function is…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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If capital and labour are perfect complements then the marginal products of capital and labour are undefined A True Faise Question 16 A firm uses 10 units of labour and 20 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product of labour must be 0.25 True B False Question 17 Afirm uses 10 units of labour and 30 units of capital to produce 10 units of output. The marginal product of labour is 05. If there are constant returns to scale the marginal product of labout must be 0.25 A True False
X 15:01 EC5011 - Seminar 2.do... II. Problems and Exercises .ıl 4 1. Consider the following production function: . Does this production function exhibit constant returns to scale? (Hint: Replace K and L by 2K and 2L, respectively, and check if F(2K, 2L) = 2F(K, L).) 2. Consider the following production function: . a. Calculate the marginal product of labour. b. Calculate the marginal product of capital. c. Does this production function exhibit diminish MPL and MPK? d. Does this function exhibit constant returns to scale? 3. Suppose represents the production function of both Mexico and Spain. Use the following information to answer the next questions. L = Population K = Capital Y = Output Country (millions) (trillion) (trillion) Mexico 105 0.18 1.0 Spain 45 0.74 1.7 a. Calculate total factor productivity for both countries using the PF in question 2. b. Calculate per capita income for both countries. c. Explain the difference in per capita income. 4. A snack food factory in the Tuas…

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The Cobb-Douglas production function is given by Y - AK" La, Here a is a given parameter that satishes 0