Theory of ProductionLaws of Return, Returns to Scale and Return to Factors of Production (IEcoS (Economic Services) Economics Paper1): Questions 1  4 of 4
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 » Laws of Return, Returns to Scale and Return to Factors of Production
Appeared in Year: 2011
Write in Short
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
Describe in Detail
Show that CobbDouglas 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 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
Appeared in Year: 2017
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 factorproportion 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

… (100 more words) …
Question number: 4
» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production
Appeared in Year: 2014
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
… (94 more words) …