Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 21.5, Problem 2ST
To determine
Explain the constant returns to scale and long-run aggregate total cost (LRATV) curve.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain what we mean by increasing, decreasing and constant returns to scale.
QUESTION 1
For the production function Qs = K0.6L0.7 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0
Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
is this an increasing/ constant/ decreasing returns to scale? explain
Chapter 21 Solutions
Economics (MindTap Course List)
Ch. 21.2 - Prob. 1STCh. 21.2 - Prob. 2STCh. 21.2 - Prob. 3STCh. 21.2 - Prob. 4STCh. 21.3 - Prob. 1STCh. 21.3 - Prob. 2STCh. 21.3 - Prob. 3STCh. 21.4 - Prob. 1STCh. 21.4 - Prob. 2STCh. 21.4 - Prob. 3ST
Ch. 21.4 - Prob. 4STCh. 21.5 - Prob. 1STCh. 21.5 - Prob. 2STCh. 21.5 - Prob. 3STCh. 21 - Prob. 1QPCh. 21 - Prob. 2QPCh. 21 - Prob. 3QPCh. 21 - Prob. 4QPCh. 21 - Prob. 5QPCh. 21 - Prob. 6QPCh. 21 - Prob. 7QPCh. 21 - Prob. 8QPCh. 21 - Prob. 9QPCh. 21 - Prob. 10QPCh. 21 - Prob. 11QPCh. 21 - Prob. 12QPCh. 21 - Prob. 13QPCh. 21 - Prob. 14QPCh. 21 - Prob. 15QPCh. 21 - Prob. 16QPCh. 21 - Prob. 17QPCh. 21 - Prob. 18QPCh. 21 - Prob. 19QPCh. 21 - Prob. 1WNGCh. 21 - Prob. 2WNGCh. 21 - Prob. 3WNGCh. 21 - Prob. 4WNGCh. 21 - Prob. 5WNGCh. 21 - Prob. 6WNGCh. 21 - Prob. 7WNGCh. 21 - Prob. 8WNGCh. 21 - Prob. 9WNG
Knowledge Booster
Similar questions
- Explain the expansion path when it is an increasing return to scale using graph and numbers. What does this mean?arrow_forwardWhat is the distinction between the laws and of returns and the returns to scale?arrow_forwardDefine the term “returns to scale”, how it is measured, and explain the three different states of constant returns to scale, increasing returns to scale, and decreasing returns to scale.arrow_forward
- Show a LRAC curve that exhibits only increasing returns to scale. In the same graph draw the corresponding LRMC curvearrow_forwardThe aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of labor, what is aggregate output? Group of answer choices 600 1000 150 3000arrow_forwardThe phrase “returns to scale” is a way of describing the change in output that is produced as a result of a relative change in inputs used. Which of the following statements is true? If inputs are doubled and output doubles, this is called increasing returns to scale. If inputs are doubled and output doubles, this is called constant returns to scale. If inputs are tripled and output doubles, this is called increasing returns to scale. If inputs are doubled and output doubles, this is called decreasing returns to scale. If inputs are tripled and output doubles, this is called constant returns to scalearrow_forward
- Microeconomics - Production FunctionFind the returns to scale of the following production functions:F(K,L) = K1/2 * L1/2F(K,L) = A* K3/4 * L1/2F(K,L) = 3K + 2Larrow_forwardThe attached econ30 image will help with answering the question. I need help with the econ31 image on where to place the symbol on each grapharrow_forwardWhat are some reasons we might see increasing returns to scale?arrow_forward
- For the production function Q = 4LK, returns to scale: O is decreasing O Can be increasing, decreasing, or constant depending on the values of L and K. O is increasing O is constantarrow_forwardWhich of the following production functions exhibits decreasing returns to scale? A) Q=K^1/2 L^1/2 B) Q=K^1/4 L^3/4 C) Q=K^1/4 L^1/3 D) Q=K^3/4 L^1/3arrow_forwardWhat are the two types of linear-gradient series?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning