Question
Consider the following production function: Q = ( X 1 ) 0.5 ( X 2 ) A. Suppose that X1is fixed at 16. Does the
Consider the following production function:
Q= (X1)0.5(X2)
A. Suppose that X1is fixed at 16. Does the resulting short-run production function exhibit
the two properties that economists like to see? Support your answer.
B. Sketch an isoquant for Q = 48 for this function. Include at least three points on the curve.
C. What sort of returns to scale does this function have? Justify your answer with an intuitive
calculation.
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Consumer Behaviour
Authors: Evans, Martin Evans
2nd Edition
0470994657, 9780470994658
