# Can there be a production function with two outputs using a single input with increasing returns...

## Question:

Can there be a production function with two outputs using a single input with increasing returns to scale but diseconomies of scope?

## Returns to Scale:

Returns to scale shows how output in production increases with the increase in inputs used in the production. There can be three forms of returns to scale in a production: increasing returns, decreasing returns and constant returns to scale. It defines how the output changes with the change in input.

## Answer and Explanation: 1

Become a Study.com member to unlock this answer! Create your account

View this answerDiseconomies of scope is a situation when a firm produces multi-product that is not efficient. It can be more efficient when different firm produce a...

See full answer below.

#### Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question#### Search Answers

#### Learn more about this topic:

from

Chapter 16 / Lesson 17Explore constant returns to scale. Learn the definition of constant returns to scale and understand its use. Discover constant returns to scale examples.

#### Related to this Question

- Is there a production function with two outputs using a single input ("money") with increasing returns to scale but dis-economies of scope?
- Does the production function q=100L- {50}/{K} exhibit increasing, decreasing, or constant returns to scale? This production function exhibits ____ returns to scale.
- The production function f(K,L) = (max\begin{Bmatrix} K,L \end{Bmatrix})^\frac{1}{2} exhibits... \\ A. Decreasing returns to scale B. Constant returns to scale C. Increasing returns to scale D. None of the above
- Determine whether the production function T(L, K)=10L+2K, yields an increasing or decreasing returns to scale or a constant returns to scale.
- Define returns to scale. Ascertain whether the given production function exhibit constant, diminishing, or increasing returns to scale.
- In a two-input model, if marginal product is increasing for one input, does the production process necessarily have to increase returns to scale? Could it have decreasing returns to scale?
- If a production function has increasing returns to scale, output can be more than doubled if a. labor alone doubles. b. all inputs but labor double. c. all of the inputs double. d. None of the above is correct.
- For each production function below, determine: (1) Whether there are diminishing marginal returns to labor in the short run, and (2) the returns to scale. 1. f(L, K) = 2L + 3K 2. f(L, K) = 4LK 3. f(L, K) = min{L, K}
- The production function Y = (X^2)*(X^{0.5}) has returns to scale. a. increasing b. marginal c. decreasing d. constant
- If a production process displays diminishing returns for all inputs, then: a) It cannot display constant returns to scale. b) It cannot display increasing returns to scale. c) It must display decreasing returns to scale. d) All of the above. e) None of th
- A production function Y=F(K,L) exhibits constant, decreasing, increasing returns to scale if for some positive number a, say a=2, we have: Constant returns: F(aK,aL)=aF(K,L)
- Solow-function transformations Y_t=K_{t}^{a}(A_tL_t)^{1-a} K_{t+1}=(1-delta)K_t+I_t I_t=S_t=sY_t a. Show that the production function above has returns to scale. b. Transform the production function i
- Find the returns to scale for the following production function where q denotes output, and x_1, x_2, and x_3 are inputs. q = (2x_1 + x_2)^{2/3} O decreasing returns to scale O constant returns to scale O increasing returns to scale
- A production function exhibits increasing returns to scale if: a. when you double each input, you double the output b. when you double each input, you less than double the output c. when you double
- If a firm doubles its usage of all inputs and output more than doubles, the production function is said to exhibit: a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing marginal returns to a fixed fac
- Determine whether this production function exhibits increasing, decreasing, or constant returns to scale.
- Consider the production function q= sqrt(L) + 8K^3. Starting from the input combination (5,10), does the production function exhibit increasing, constant or decreasing returns to scale if inputs doubl
- If a firm doubles its usage of all inputs and output also doubles, the production function is said to exhibit: a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing marginal returns to a fixed factor o
- If a firm doubles its usage of all inputs and output less than doubles, the production function is said to exhibit: a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. decreasing marginal returns to a fixed fac
- If your firm's production function has a decreasing returns to scale and you increase all your inputs by 60%, then your firm's output will: a. not change. b. increase, but by less than 60%. c. increase by 60%. d. increase by more than 60%.
- A production function with constant returns to scale for capital alone implies that: A. there are increasing returns to scale for all factors of production taken together. B. if all inputs are doubled then output will more than double. C. technological ad
- If a change in all inputs leads to a proportional change in the output, it is a case of a. Increasing returns to scale b. Constant returns to scale c. Diminishing returns to scale d. Variable returns to scale
- Let the production function be q = AL^aK^b. The function exhibits increasing returns to scale if A. a + b is less than 1. B. a + b = 1. C. a + b is greater than 1. D. Cannot be determined with the information given.
- Find the returns to scale for the following production function where q denotes output, and x_1 and x_2 are inputs. q = ( min { x_1, 2x_2 } )^{1/4} O decreasing returns to scale O constant returns to scale O increasing returns to scale
- A production function can exhibit increasing, constant or decreasing returns to scale. Describe the meaning of this statement using a simple production function Y = F (K, L) , where K is capital and L
- Consider the production function f(x_1, x_2) = x_1^{1/2} x_2^{3/4} . Show that it presents increasing returns to scale.
- State whether the following production functions exhibit decreasing returns to scale, increasing returns to scale or constant returns to scale, briefly explain.
- Does the production function: q = 100L - 20/k exhibit increasing, decreasing, or constant returns to scale?
- MARGINAL PRODUCT IS BETWEEN ROWS (32 IS BETWEEN ROW 3 AND 4) A) Does the production function exhibit diminishing marginal returns? B). If so, where do they "set in"? C) Intuitively, what will happe
- The production function q=100k^0.4L^0.8 exhibits: a. increasing returns to scale but diminishing marginal products for both k and l. b. decreasing returns to scale and diminishing marginal products for both k and l. c. increasing returns to scale but dim
- The production function q = 22K^{0.7}L^{0.1} exhibits A. increasing returns to scale. B. constant returns to scale. C. unknown returns to scale because the exponents are not equal. D. decreasing returns to scale.
- In a production process, is it possible to have decreasing marginal product in an input, and yet decreasing returns to scale?
- |Q|TVC |1|50 |2|100 |3|140 |4|170 |5|190 |6|200 |7|220 |8|250 |9|290 |10|340 1. Over what range of output does this firm exhibit increasing returns (increasing MP), and diminishing returns
- According to the law of diminishing returns, over some range of output: a. Every production function exhibits diminishing returns to scale. b. Total product will decrease as the quantity of variable input employed increases. c. Marginal product will event
- Briefly outline the difference between diminishing returns to a factor and decreasing returns to scale. Does either of these situations confirm production inefficiency?
- Determine whether the following production function have increasing, decreasing or constant returns to scale. a. Q=0.001M+50,000 b. Q=15K+0.5KL+30L
- Find the returns to scale for the following production function where q denotes output, and x_1, x_2, and x_3 are inputs. q = x_1^{1/4} x_2^{1/3} O decreasing returns to scale O constant returns to scale O increasing returns to scale
- Find the returns to scale for the following production function where q denotes output, and x_1, x_2, and x_3 are inputs. q = 4x_1^{1/4} x_2^{1/4} x_3^{1/4} O decreasing returns to scale O constant returns to scale O increasing returns to scale
- The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. According to the Law of Diminishing Returns, the
- According to the aggregate production function, when inputs increase _____.
- Returns to scale. A production function has constant returns to scale with respect to inputs with inputs K and L if for any z is greater than 0: F(z \cdot K, z \cdot L) = zF(K,L) (1) For example, f
- Consider the production function Y=\frac{X-500}{20}, where Y is output and X represents inputs. Graph this production function. Does it display decreasing, constant, or increasing returns to scale?
- If the slope of the total cost curve increases as output increases, the production function is exhibiting: a. increasing returns to scale b. constant returns to scale c. decreasing returns to scale d. decreasing returns to a factor input
- If output is produced with two factors of production and with increasing returns to scale, a) there cannot be a diminishing marginal rate of substitution. b) all inputs must have increasing marginal products. c) on a graph of production isoquants, moving
- For each of the following production functions, are there Increasing returns to scale, constant returns to scale, decreasing returns to scale, or does the answer depend on output level: - A. B. C. D.
- The production function is the: a.) increase in the amount of output from an additional unit of labor. b.) marginal product of input times the price of output. c.) relationship between the number o
- The production function of an economy is: Y = A * K^{0.3} * H^{0.7} a. What is real output when K = 20, H = 50 and A = 2? b. Does this production function exhibit diminishing marginal productivity of capital? Calculate MPK if K increases from 50 to 60 a
- Assume a production function can exhibit increasing, constant or decreasing returns to scale. Describe the meaning of this statement using a simple production function Y = F (K, L), where K is capital
- Are the returns to scale of the following production functions increasing, decreasing, or constant? a) Q = KL/4 b) Q = K + L c) Q = Min(K/6, L/3)
- Check if the following production function is constant, decreasing, or increasing return to scale: a. q = K^1/2 L^3/4 b. q = K^1/2 L^4/6
- Do the following production functions exhibit decreasing, constant, or increasing returns to scale? Show calculations to justify your answers. (a) Q = 0.5KL (b) Q = 2K + 3L (c) Q = L + L1/2K1/2 + K
- If the slope of a long-run total cost function decreases as output increases, the firm's underlying production function exhibits: a. Constant returns to scale. b. Decreasing returns to scale. c. Decreasing returns to a factor input. d. Increasing returns
- How can you determine the returns to scale by just noticing a production function?
- Suppose firms have the following production function This production function exhibits a. Increasing returns to scale b. Decreasing returns to scale. c. Constant returns to scale. d. The returns to sc
- Find the returns to scale for the following production function where q denotes output, and x_1 and x_2 are inputs. q = (0.3sqrt{x_1} + 0.7 sqrt{x_2})^{1/2} O decreasing returns to scale O constant returns to scale O increasing returns to scale
- As more capital is used in the production process, the amount of other inputs being fixed, the production function becomes: a. steep because the extra output produced from an additional unit of capital decreases. b. flat because the extra output produced
- If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will: A. double and productivity will rise. B. more then double but productivit
- A production function may exhibit _____. a. constant returns to scale and diminishing marginal productivities. b. increasing returns to scale and diminishing marginal productivities. c. decreasing returns to scale and diminishing marginal productivities.
- A firm has the production function q = f (L, K) = L + K2 This firm has: a) Decreasing returns to scale. b) Increasing returns to scale. c) Constant returns to scale. d) Increasing marginal product. e) None of the above.
- Which of the following production functions exhibit decreasing returns to scale? In each case, q is output and K and L are inputs. (1) q=K^{1/3} L^{2/3}(2) q=K^{1/2} L^{1/2} (3) q=2K+3L a. 1,2,and 3 b. 2 and3 c. 1 and 3 d. 1 and 2 e. None of the func
- If a 10% increase in both capital and labor causes output to increase by less than 10%, the production function is said to exhibit decreasing returns to scale. If it causes output to increase by more
- How can we determine the returns to scale by seeing a production function?
- The marginal product of labor in manufacturing slopes downward because of: A. diseconomies to scale B. discontinuities in the production function C. diminishing returns D. gross substitution with the food sector E. None of the above.
- Let a production function exist such that Q=(K0.30 L0.75) a) Does this production function exhibit Increasing, Decreasing or Constant Returns to Scale? Explain what your answer means and how you know.
- For the production function Q = K^0.5L^0. 5, if K and L are both 4 and K increases to 9, output will increase by _____ units.
- Given the production function q = 10K_{a}L^{B}, show that this exhibits constant returns to scale if a+B = 1.
- Determine whether the production function exhibits increasing, constant or decreasing returns to scale. Q = L^(0.5) K^(0.5)
- The production function for outdoor benches is given by: q = (K0.5 + L0.5)2, where the variables are as usual. Does this production function exhibit constant returns to scale? Provide a general algeb
- State whether the following production functions exhibits constant, increasing or decreasing returns to scale. Assume in all cases {bar}() A is greater than 0. 1) Y = 1/2*K + L 2) Y = L^(3/2) + K^(5/
- The production function is Y = 3KL. If there are 10 units of capital (K) and 50 units of labor (L), the aggregate output is: A) 1,500 B) 500 C) 3,500 D) 35,010
- The main difference between a short-run production function and a long-run production function is that ______. a. in the short-run production function, all of the inputs are variable, while in the long-run production function, all of the inputs are fixed
- The shape of a firm's production function will change if the productivity of its variable input changes.
- The original revenue function for the microchip producer is R = 170Q - 20^Q. Find the output level at which revenue is maximized.
- Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale? a. q = L + K, a linear production function, b. q = L^{\alpha}K^{\beta}, a general Cobb-Douglas production function.
- 1) A production function shows: a) the quantities of output that can be produced with different quantities of inputs b) how much profit a firm can make at different output levels c) the long run fi
- Give an example of a production function that exhibits increasing returns to scale and diminishing marginal product of labor at the same time. Prove that the function has these properties.
- Consider the following production function: q = 4LK. Which term describes this production function's returns to scale? A. increasing returns to scale B. decreasing returns to scale C. constant returns to scale
- Why is it that in the production sometimes after a certain point increase in inputs leads to less return?
- The profit function for two products are given by Z1 and Z2, respectively. Z 1 = Y 2 + 17 Y ? 42 Z 2 = Y 2 + 16 y ? 38 Z1=Y2+17Y?42Z2=Y2+16y?38 a. At what level of output, Y, will be the first produc
- The main difference between a short-run production function and a long-run production function is that: a. in the short-run production function, all of the inputs are variable; in the long-run production function, all of the inputs are fixed. b. in the sh
- Suppose f(L, K) = K^2 + LK + L^1/2 K^1/2. Does this production function exhibit increasing, decreasing or constant returns to scale? Show your work.
- Average cost declines as output expands in a production process with: a. Constant returns to scale. b. Decreasing returns to scale. c. Decreasing returns to a factor input. d. Increasing returns to scale.
- The first stage of the production function occurs when the firm experiences: a) negative returns. b) constant returns. c) diminishing returns. d) increasing returns.
- Given the Production Function of a perfectly competitive firm, Q=120L+9L^2-0.5L^3, where Q=Output and L=labor input a. At what value of L will Diminishing Returns take effect? b. Calculate the range of values for labor over which stages I, II, and III occ
- According to the law of diminishing marginal returns, a. a successive increase in a variable input will continuously yield increases in output. b. a successive increase in a variable input will immediately reduce the total production. c. a successive i
- Why is it sensible to assume that the production function exhibits constant returns to scale and diminishing returns to capital?
- What are the returns of scale for this production function: Qs = 2L^{0.3}K^{0.8} and why?
- Suppose you have two production functions where A is constant total factor productivity: (i) y = A(K + L), (ii) y = A + (K + L) Show/demonstrate that only one is a constant returns to scale production function. Also, show/demonstrate that the other
- Show whether the following production functions exhibit decreasing returns to scale (DRS), constant returns to scale (CRS), or increasing returns to scale (IRS). A. q = 10L^{0.6}K^{0.5} B. q = L + K C. q = L^{0.6} + K^{0.5}
- If the production function for a certain good exhibits constant returns to scale, does this mean that the law of diminishing marginal returns does not apply?
- The profit function of a firm for a given level of output 'x' is estimated by nonlinear regression to be: P(x) = -(x - 375)^2 +1,200. What is the production level at which profit is maximized? What is
- Company S has 10,000 units of capital, 2,000 workers, and a production function 200K^0.3 L^0.7. When company S increases its capital input by 100 units, its output increases approximately by (blank).
- A firm has the production function f(x, y) = x^1.40y^1. This firm has: a. decreasing returns to scale and diminishing marginal products for factor x. b. increasing returns to scale and decreasing marginal product of factor x. c. decreasing returns to scal
- Fixed inputs are factors of production that a. are determined by a firm's size. b. can be increased or decreased quickly as output changes. c. cannot be increased or decreased as output changes. d. None of the answers above are correct.
- If a firm's production process exhibits increasing returns to scale, then doubling all the firm's inputs will lead output to _____. a) double. b) more than double. c) less than double. d) fall by one-half.
- A short-run production function is one where: at least one factor of production is fixed all factors of production are fixed capital may or may not be substituted for labor none of the above
- Diminishing marginal returns: a. imply decreasing returns to scale. b. occur at all combinations of input usage. c. occur only for labor. d. are consistent with increasing returns to scale. e. are inc