This topic contains a solution. Click here to go to the answer

Author Question: A firm has the following production function: q = (L1/3 + K1/3)3 a. Determine the returns to ... (Read 62 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
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
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
Excellent


connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

For a complete list of videos, visit our video library