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 68 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
Great answer, keep it coming :)

patma1981

  • Member
  • Posts: 292
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Predicted effects of piscivores on planktivore, herbivore, and phytoplankton biomass and production Predicted effects of piscivores on planktivore, herbivore, and phytoplankton biomass and production
Prolonged abuse leads to production of stress hormones that can lead to a cascade of effects ... Prolonged abuse leads to production of stress hormones that can lead to a cascade of effects ...
Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact. Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact.
As the world’s population continues to grow, demands on limited resources for food production As the world’s population continues to grow, demands on limited resources for food production
Given the parent function f(x)=log10(bottom exponent)x, state the equation of the function that Given the parent function f(x)=log10(bottom exponent)x, state the equation of the function that
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
Video: Functional zones in a mitochondrion

For a complete list of videos, visit our video library