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Questions › JNU › JNU SSS 2020 › Q10
1 markMicroeconomics › Production and returns to scale › Producer equilibrium and the expansion pathModerateabout 2 min

JNU SSS 2020 Question 10: Production and returns to scale

When production function of a firm is Q=20 K0.5L0.5K^{0.5}L^{0.5}K0.5L0.5 , price of capital is ₹ 5 per unit and price of labour is ₹ 4 per unit. What will be expansion path ratio for the firm ?

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When production function of a firm is Q=20 K⁰·⁵L⁰·⁵, price of capital is ₹ 5 per unit and price of labour is ₹ 4 per unit. What will be expansion path ratio for the firm? (A) K=0.3L (B) K=39/4L (C) K=14/5L (D) K=0.8L

Also written as: When production function of a firm is Q=20 K^(0.5)L^(0.5), price of capital is ₹ 5 per unit and price of labour is ₹ 4 per unit. What will be expansion path ratio for the firm?

Production and returns to scale has come up 92 times in 6 exams since 2007.

What this question tests

This question is on Producer equilibrium and the expansion path, part of Production and returns to scale in Microeconomics.

The least-cost mix of inputs at given prices and how it moves as output grows.

TestStop has 13 past-paper questions on this subtopic; the nearest in year are below.

  • IIT JAM 2022 · Q59Let the production function be Q = √(L² + K²), with unit prices of labour and capital Rs. 30 and Rs. 40, and…
Practise Production and returns to scaleMore on Producer equilibrium and the expansion path

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Question from the JNU SSS 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.