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1. (25 pts) Suppose the farm technology is given by y = 10x25x23, answer the following a. (1pts) Calculate the MPP for x b.

 

1. (25 pts) Suppose the farm technology is given by y = 10x25x23, answer the following a. (1pts) Calculate the MPP for x b. (1pts) Calculate the MPP for x c. (4pts) Find the isoquant for y = 45 (obtain the equation for x in terms of x and y = 45) d. (5pts) Graph your result from (c) with x in the vertical axis and x in the horizontal axis for y = 45. To graph the isoquant, use the following values for x = 2, 3, 4, 5, 6, 7, 8, 9, and 10 e. (4pts) Find the MRSxx2 f. (5pts) What is the MRSxx for x = 7 and x = 6? Provide an explanation. g. (5 pts) Does this farm display constant returns to scale? Show your math and interpret their return to scale you find.

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