This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: From the profit maximizing conditions for the Cobb-Douglas production function, we find that the ... (Read 24 times)

faduma

  • Hero Member
  • *****
  • Posts: 528
on: Jul 1, 2018
From the profit maximizing conditions for the Cobb-Douglas production function, we find that the optimal input demands for labor and capital may be related as L = brK/(aw). Under what conditions are the expenditures on capital and labor equal?
 
  A) Constant returns to scale
  B) Increasing returns to scale
  C) Decreasing returns to scale
  D) a = b

Question 2

Refer to Scenario 14.4. Suppose that a tax is imposed on each unit of the product that John produces. Which curve will shift?
 
  A) Marginal product of labor
  B) Marginal revenue product of labor
  C) The supply of labor
  D) All of the above will shift due to the tax on output.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

maaaaaaaaaa

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

B


faduma

  • Member
  • Posts: 528
Reply 2 on: Jul 1, 2018
Wow, this really help

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

The black-capped chickadee is a permanent resident in biomes with harsh winter conditions. The black-capped chickadee is a permanent resident in biomes with harsh winter conditions.
Structure and function of phage T4 Structure and function of phage T4
Pathway of urine production and elimination. Pathway of urine production and elimination.
Aaron Douglas, Aspiration. Aaron Douglas, Aspiration.
How to plot a sine function containing an amplitude and phase shift (Question 1 of 3) How to plot a sine function containing an amplitude and phase shift (Question 1 of 3)
How to horizontally shift a quadratic function along the x-axis How to horizontally shift a quadratic function along the x-axis
Video: Structure of Amino Acid, Peptide Bonds & Polypeptides

For a complete list of videos, visit our video library