Theory of ProductionForms of Production Functions (IEcoS (Economic Services) Economics Paper1): Questions 1  5 of 5
Access detailed explanations (illustrated with images and videos) to 85 questions. Access all new questions we will add tracking exampattern and syllabus changes. Subscription can be renewed yearly absolutely FREE! View Sample Explanation or View Features.
Rs. 300.00 or
How to register?
Question number: 1
» Theory of Production » Forms of Production Functions
Appeared in Year: 2011
Write in Short
Consider a Cobb Douglas production function where K and L are respectively the capital and labour to produce output y. show that if all the factors are paid according to their marginal products, the total product will be enhausted if
Question number: 2
» Theory of Production » Forms of Production Functions
Describe in Detail
Consider the following duopoly. Demand is given by where the firm’s cost function are:
What is each firm’s equilibrium output and profit if they behave noncooperatively? (Section C)
Explanation

In the Cournot model, firm 1 takes firm output as given and maximizes profits. The profit function them becomes:
… (105 more words) …
Question number: 3
» Theory of Production » Forms of Production Functions
Appeared in Year: 2013
Describe in Detail
Consider the following duopoly. Demand is given by where the firm’s cost function are:
Suppose both firms have entered the industry. What is joint profit maximising level of output? How much will each firm produce? How would your answer change if the firms have not yet entered the industry? (Section C)
Explanation

Setting marginal revenue to marginal cost (the MC of firm 1 since it is lower than that of firm 2) we get:
… (192 more words) …
Question number: 4
» Theory of Production » Forms of Production Functions
Appeared in Year: 2015
Describe in Detail
Define Linear homogenous production function and give an example. Show that in the case of the linear homogenous production function the expansion path must be a straight line passing through the origin.
Explanation
The Linear Homogeneous Production Function implies that with the proportionate change in all the factors of production, the output also increases in the same proportion.

Such as, if the input factors are doubled the output also gets doubled. This is also known as constant returns to a scale.

The production function is said to be homogeneo
… (330 more words) …
Question number: 5
» Theory of Production » Forms of Production Functions
Appeared in Year: 2017
Describe in Detail
Write down the form of CES production function and interpret its parameters. Find out the elasticity of substitution of the CES production function
Explanation
Arrow, Chenery, Minhas and Solow in their new famous paper of 1961 developed the Constant Elasticity of Substitution (CES) function. This function consists of three variables Q, C and L, and three parameters A, and it can be expressed in the form:
where Q is
… (163 more words) …