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hw12a - where they are all scaled to an output of 100 b...

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Homework 12 1. Consider the production function Q=f(K,L). Show that if + =1 for the Cobb- Douglas version, that it has constant returns to scale. Also show that the linear form has constant returns to scale. 2. Find at least 5 points on the isoquandt for the production function Q=30K 0.3 L 0.7 if Q=100. 3. Given the following data: Firm Q K L A 100 2 6 B 100 2 5 C 200 2 8 D 200 8 6 E 300 9 6 F 300 15 3 G 400 12 12 Answer the following: a) Assuming constant returns to scale, plot the points (K is x-axis and L is y-axis)
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Unformatted text preview: where they are all scaled to an output of 100. b) Draw conclusions from this plot about which points strictly dominate the other(s). c) Sketch the efficient frontier, showing which points have a technical efficiency of 1.0. d) Graphically determine the technical efficiency for firm 1. e) Write the linear program to determine the technical efficiency for firm 1....
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