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

Author Question: A firm has the following production function: q = (L1/3 + K1/3)3 a. Determine the returns to ... (Read 48 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
on: Jul 1, 2018
A firm has the following production function:
 
  q = (L1/3 + K1/3)3
 
  a. Determine the returns to scale for this function.
  b. Determine the MRTS.
  c. Determine the Elasticity of Substitution.

Question 2

A monopoly will NOT be able to perfectly price discriminate if
 
  A) obtaining information about each buyer's reservation price is too costly.
  B) demand is very elastic.
  C) demand is very inelastic.
  D) resale is impossible.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Mholman93

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 1, 2018
Answer to Question 1

a. CRTS
b. MRTS = -(L/K)-2/3
c. E = 3/2

Answer to Question 2

A


mwit1967

  • Member
  • Posts: 501
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

endocrine function of the kidneys endocrine function of the kidneys
Using Parallax to Determine Distance Using Parallax to Determine Distance
How to find the limit of a function using delta and epsilon How to find the limit of a function using delta and epsilon
How to shift and reflect a square root function using transformations How to shift and reflect a square root function using transformations
How to vertically shift a quadratic function along the y-axis How to vertically shift a quadratic function along the y-axis
How to use the discriminant to determine the value of k in a quadratic with one real root How to use the discriminant to determine the value of k in a quadratic with one real root
Video: Stroke volume - preload, sarcomere length and Frank -Starling law

For a complete list of videos, visit our video library