Examlex

Solved

Consider the Cobb-Douglas Production Function F(L,K)= ALαKβ

question 45

Essay

Consider the Cobb-Douglas production function F(L,K)= ALαKβ.Suppose that α = 2,β = 3,the firm has 3 units of capital and the firm's general productivity level is 20.
(a)What is the firm's long-run production function?
(b)What is the firm's short-run production function?
(c)If the firm employs 10 workers,what are the marginal products of labor and capital?
(d)If the firm employs 10 workers,what is the marginal rate of technical substitution for labor with capital?
(e)Does this firm's technology exhibit increasing,decreasing or constant returns to scale?


Definitions:

Related Questions