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Consider a firm which produces according to technology f ( x 1 , x 2 ) = x 1 1 3 x 2 2 3
Consider a firm which produces according to technology From Tutorial
a Show formally whether this production function exhibits increasing, constant, or decreasing returns to scale.
Do not just add the powers, look at Section of the textbook and follow the method outlined.
b Show whether average cost is is increasing, decreasing or constant.
c Repeat parts a and b if the firm's technology changes to
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