Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has the production function f(x, ) = 1 where and are the input quan- tities. (a) Write the equation of the isoquant

 

A firm has the production function f(x, ) = 1 where and are the input quan- tities. (a) Write the equation of the isoquant for output level 12 and find three points on it. Is the isoquant negatively sloped? Explain briefly why. (b) Find the marginal product of each input. Are the marginal products decreasing (dimin- ishing) in the input quantity? (c) Does the firm have decreasing, increasing, or constant returns to scale?

Step by Step Solution

3.43 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

a The isoquant equation for output level 12 is obtained by setting fx1 x2 12 Therefore the isoquant ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

More Books

Students also viewed these Economics questions

Question

What is an ulterior transaction?

Answered: 1 week ago

Question

Identify the most stable compound:

Answered: 1 week ago