Theory of Production-Laws of Return, Returns to Scale and Return to Factors of Production (IEcoS (Economic Services) Economics Paper-1): Questions 1 - 4 of 4

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Question number: 1

» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production

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Appeared in Year: 2011

Short Answer Question▾

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Consider a linear demand function where q = quantity demanded, p. = price per unit and . Find out the average and the marginal revenue and draw the diagram.

Question number: 2

» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production

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Essay Question▾

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Show that Cobb-Douglas production function , where symbols have usual meaning, exhibits constant returns to scale but diminishing returns to a factor of production.

Explanation

The sum of the exponents of L and K

The Sum of the Exponents of L and K

The sum of the exponents of L and K

The sum of the exponents of L and K shows the returns to scale, since , the produce function exhibits constant returns to scale.

… (47 more words) …

Question number: 3

» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Distinguish between laws of variable proportions and laws of returns to scale.

Explanation

  • Major Differences between Returns to Scale and Returns to a factor Proportions are listed below:

  • Returns to a factor:

    • Only one factor varies while all the rest are fixed.

    • The factor-proportion varies as more and more of the units of the variable factor are employed to increase output.

    • Returns to a factor or to variable proportion

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Question number: 4

» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production

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Appeared in Year: 2014

Essay Question▾

Describe in Detail

Consider the production function

(a) What is the name of this type of production function?

(b) What is the elasticity of substitution for this production function?

(c) Does this production function exhibit increasing, decreasing, or constant returns to scale?

(d) Suppose that the production function took the form . Does this production function exhibit increasing, decreasing or constant returns to scale?

Explanation

CES production function has a form where the function is expressed as . In the above Production function,

.

a) This type of production function i

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