Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Consider the production function given as =( 1 , 2 )= 1 3/6 2 2/4 , where 1 and 2 refer to factor inputs 1

Consider the production function given as =(1,2)= 13/622/4, where 1 and 2 refer to factor inputs 1 and 2, respectively.

1. With the aid of a scalar t (t > 1), prove whether this function exhibits increasing, decreasing or constant returns to scale

2. Apply partial differential calculus, to determine whether the above function exhibits diminishing marginal returns to factor x1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial Accounting and Reporting a Global Perspective

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

4th edition

978-1408076866

Students also viewed these Economics questions