Solved: Does output per unit of labor depend only on a and b value, Microeconomics

+44 141 628 6080
[email protected]

Does output per unit of labor depend only on a and b value

According to the chief engineer at the Zodiac Company, Q=AL^aK^B, where Q is the output rate, L is the rate of labor input, and K is the rate of capital input. Statistical analysis indicates that a=0.8 and B=0.3. The firm's owner claims the plant has increasing returns to scale.

a. Is the owner correct?

b. If B were 0.2 rather than 0.3 would she be correct?

c. Does output per unit of labor depend only on a and B? Why or why not?

View Complete Question

Solution Preview :

Prepared by a verified Expert

Microeconomics: Does output per unit of labor depend only on a and b value

Reference No:- TGS0513742

Now Priced at $12 (50% Discount)

Recommended (90%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Microeconomics

Q : Major costs in altering an existing supplier relationship

Write down some of the major costs in altering an existing supplier relationship or establishing a new one? What significant costs may be incurred by a manufacturing business upon modifying the supplier relationship?

Q : Case study of karen austin corporation

Karen Austin Corporation has capitalized software costs of $709,500, and sales of this product first year totaled $395,130. Karen Austin anticipates earning $921,970 in additional future revenues from this product, which is estimated to have econo

Q : What types of documents are you likely to obtain

Assume you are preparing the customer satisfaction questionnaire. What types of questions would you include? Prepare five questions that you would ask.

Q : Quality system is not just a series of boxes and arrows

The statement has been made that "A quality system is not just a series of boxes and arrows.

Q : Does output per unit of labor depend only on a and b value

According to chief engineer at Zodiac Company, Q=AL^aK^B, where Q is output rate. Does output per unit of labor depend only on a and B? Why or why not?

Q : External quality management organization

What value does an external quality management organization bring to the company which employs their methodology?

Q : What are disruptive technologies

What are disruptive technologies and how do they enable organizations to change their business processes radically? Give a specific example. This assignment only has to be about a paragraph or two, but has to be at least 200 words.

Q : Question regarding the economic statistics

You're the owner of small bread factory and are thinking of lowering costs and expanding. Your small-business advisors suggested that you first review your operations and make some technological changes. Complete following:

Q : Find marginal revenue from the extra dollar of advertising

If Wilson Company spends $200,000 on advertising, find the marginal revenue from the extra dollar of advertising?

1938021

Questions
Asked

3,689

Active Tutors

1454425

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Microeconomics: Does output per unit of labor depend only on a and b value

Reference No:- TGS0513742

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Major costs in altering an existing supplier relationship

Q : Case study of karen austin corporation

Q : What types of documents are you likely to obtain

Q : Quality system is not just a series of boxes and arrows

Q : Does output per unit of labor depend only on a and b value

Q : External quality management organization

Q : What are disruptive technologies

Q : Question regarding the economic statistics

Q : Find marginal revenue from the extra dollar of advertising

Investigate the cause of the recent werewolf attacks

Describe marxist theory and psychology of addiction

Explain framers decisions in creating the constitution

Federal bureaucracy has to put up with a lot of red tape

What power of recognition when it comes to office president

What right ordinance power give to the president

Analyze leadership of organization during particular event

Solution Preview :

Prepared by a verified Expert

Microeconomics: Does output per unit of labor depend only on a and b value

Reference No:- TGS0513742

Recent Questions Asked Microeconomics

Q : Major costs in altering an existing supplier relationship

Q : Case study of karen austin corporation

Q : What types of documents are you likely to obtain

Q : Quality system is not just a series of boxes and arrows

Q : Does output per unit of labor depend only on a and b value

Q : External quality management organization

Q : What are disruptive technologies

Q : Question regarding the economic statistics

Q : Find marginal revenue from the extra dollar of advertising

Asked Questions