Suppose the production function for teddy bears is given by Q(K, L) = K + 10v L. Suppose the wage is...

Question

Suppose the production function for teddy bears is given by Q(K, L) = K + 10√L. Suppose the wage is 1, and the rental rate is 1.
(a) (6 points) Find the firm’s long-run total cost function. Note: It has more than one piece.
(b) (3 points) Does this production function exhibit increasing, decreasing, or constant returns to scale?
(c) (4 points) Determine whether the function exhibits economies of scale, diseconomies of scale, or constant economies of...

David · Accepted Answer

Suppose the production function for teddy bears is given by Q(K, L) = K + 10√L. Suppose the wage is 1, and the rental rate is 1. 
(a) (6 points) Find the firm’s long-run total cost function. Note: It has more than one piece. 
(b) (3 points) Does this production function exhibit increasing, decreasing, or constant returns to scale? 
(c) (4 points) Determine whether the function exhibits economies of scale, diseconomies of scale,

Suppose the production function for teddy bears is given by Q(K, L) = K + 10v L. Suppose the wage is 1, and the rental rate is 1. (a) (6 points) Find the firm’s long-run total cost function. Note: It...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment