Managerial Economics
A company has developed the production function of Q=80L.5 K0.6 where L represents labor and K represents Capital.
a. If L is increased by 2% with K unchanged, what is the resulting percentage change in output?
b. Describe the nature of returns to scale for this production function.
asked by
Patty

3
posted by Yury
Respond to this Question
Similar Questions

Economics
A CobbDouglas production function for new company is given by f(x,y) 50x 2 5 y 3 5 where x represents the units of labor and y represents the units of capital. Suppose units of Labor and capital cost 
econ
Suppose the production function for widgets is given by: Q = KL  0.8K^2  0.2L^2 where Q represents the quantity of widgets produced, K represents the annual capital input and L represents annual labor input. (a) For K = 10, what 
Calculus
"The production amount, Q, of an item manufactured by a company is modeled by the CobbDouglas function Q = 200(K^0.6)(L^0.4)(T^0.3) where K is the quantity of capital investment, L is the quantity of labor used, and T is the 
Economics
Consider the production function Q = 20K 1/2 L 1/2. The firm operates in the short run with 100 units of capital. a. The firmâ€™s shortrun production function is Q = __________. c. The average product of labor function is AP = 
Economics Help pls
Suppose you are given the following production function: , where y is output and K is capital. y= 60K + 20.3K2 K3 1.1 what is a production function, what is the real work application of such, and where would you source the data 
calculus word problem
A company has a CobbDouglas production function f(x,y)= 20x^0.33y0.67 where x is the utilization of labor and y is the utilization of capital. Determine the number of units of product produced when 1728 units of labor and 27,000 
economics
The cost function for an enterprise has the following form: TC = 10L + 20K The production function has the form: 4 ln L + 10 K 1/2 a. Derive the mathematical forms of the marginal and average products of capital and labor. How is 
Managerial Economics
I'm not sure I have the formulas correct for this problem and I do not know what the labor hours are.... Dimex Company, a sheetmetal mfg., estimates its long run production function is: 3 3 2 2 Q = 0.015625K L + 10K L where Q is 
Economics (PPFs)
Society has 20 units of capital and 20 units of labor. The production function for X can be expressed as X = K1/2L1/2, and the production for Y can be expressed as Y = K + L. Which of the following input allocations is not 
Algebra
I need helop!A lawn a company charges an initial fee of $200.00 plus $50 per hour for labor costs. If h represents labor hours and c represents the cost what is the total cost equation and how do I work this out step by step, I