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The case:

Daewoo Express is the first and the biggest foreign investment Company with an advanced and organized transport system in Pakistan. It is the only transport company to have a nationwide network with various international trade links. Daewoo Express has been rendering transport facilities since its inception in 1997 to the people of Pakistan. It is appreciated by the masses as well as by the Governments of Pakistan and Korea for its consistent success.

Let’s consider the following Cobb-Douglas production function for Daewoo Express in Pakistan.

 

Q = 1.4L.25k0.72F0.15

Where,

Q = Output in millions of passenger miles

L = Labor input in worker hours

K = Capital input in bus transit hours

F = Fuel input in gallons

Requirement:

Keeping in view the Cobb-Douglas production functions of Daewoo Express Company, identify that under which scales of production the Daewoo Express Company is running and why?

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Replies to This Discussion

Please Discuss here about this GDB.Thanks

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sir but koi disscussion hi kr dy... woh bhi koi nai kr rha

koi to helping material hi send kr day GDB sy related.... ALLAH bhalla krain gy uska.... plz

Dear Students Don’t wait for solution post your problems here and discuss ... after discussion a perfect solution will come in a result. So, Start it now, replies here give your comments according to your knowledge and understandings....

its numerical question 

yes but kesy krna kuch samajh nai aa rha thora sa pta to chaly...

what are the scale of production?

When the output increases exactly in proportion to an increase in all the inputs or factors of production, it is called constant returns to scale. ... A regular example of constant returns to scale is the commonly used Cobb-Douglas Production Function (CDPF).

Kindly give any hint or which lecture is helpful to complete this gdb.Any idea please early as possible

http://www.egwald.ca/economics/productionfunctions.php 

is link main sy help ly lain.....

or return to scale jo ho ga woh 

  1. Increasing returns to scale: alpha + beta + gamma > 1

solve kasiy krna hy

1.15 ans hy bs

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