Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions by mentioning whether they are true or false (True/False). And don't forget to give a small explanation on why it is

Answer the following questions by mentioning whether they are true or false (True/False). And don't forget to give a small explanation on why it is true or false.

1- If the production function is f(x1, x2) = x1x2, then there are constant returns to scale, and the isoquant describing this technology is a straight line.

2- The production function f(x, y) = x^2/3+y^2/3 has increasing returns to scale.

3- The production function f(x, y) = x + y has constant returns to scale, and the isoquant describing this technology

is L-shaped.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Microeconomics

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

1st Edition

978-1464146978, 1464146977

Students also viewed these Economics questions

Question

Create a Fishbone diagram with the problem being coal "mine safety

Answered: 1 week ago