Econ-Returns to scale

posted by Linda

Determine whether returns to scale is decreasing, increasing or constant:
Q = 2K + 3L + KL

Take a shot. Hint: increase both K and L by, say 10%. Does Q rise by more than 10% (increasing), less than 10% (decreasing), or exactly 10% (constant)

  1. T

    Increasing returns to scale

  2. sas


Respond to this Question

First Name

Your Answer

Similar Questions

  1. Economy

    How to draw isoquant curves for a certain quantity?
  2. Microeconomics

    If a firm has a U-Shaped long-run average cost curve, a.) its fixed cost rises as output rises. b.) it must have increasing returns to scale at low levels or production and decreasing returns to scale at high levels of production. …
  3. Advanced Economics(resoponses to economyst to my q

    Orginal question: display.cgi?id=1233498037 although diseconomies of scale may not result in a rising marginal cost (but it is certain for AC,right?
  4. economics

    When a firms long run avg cost curve is horizontal for a range of output, then in that range production displays: a) constant avg fixed costs b) increasing returns to scale c) constant returns to scale d) decreasing returns to scale …
  5. ECON

    PLEASE CHECK AND CORRECT MY ANSWERS!!!! MRTS = marginal rate of technical substitution RTS = returns to scale MP = marginal product Suppose the production function is Cobb-Douglas and f(x1, x2) = [x1^(1/2)][x2^(3/2)]. (Note: x1 and …
  6. economics

    if production is Q=(a^c) min(K,L) where a>0, c>1, price of capital(r)=£10 and price of labour (w)= £10 what is the optimal combination of capital and labour?
  7. economics

    A village has n fishermen who exploit the sea nearby and sell their catch at market price (assumed constant). The extraction technology displays decreasing returns to scale and is a=e^-1/2 where e is the total effort. 1) What is the …
  8. Management & Economics

    a producer of light bulbs claims to have the folllowing production function: Q=10L*G. a) what is the marginal product of labor?
  9. micro

    hi, i need some help with my econ homework. i know what the law is, basically that more isn't always better. i just need to know how to tell if it applies to a labor equation. my problem goes like this. F(K,L) = K + 10L, write expressions …
  10. Economics

    2. If a firm increases all of its inputs by 60 percent and its output increases by 90 percent, then you know that: A) it is encountering diseconomies of scale. B) it is encountering economies of scale. C) it is encountering constant …

More Similar Questions