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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
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