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Find the following for each equation: - The marginal product of each input - Find if the production function shows diminishing marginal returns to each
Find the following for each equation:
- The marginal product of each input
- Find if the production function shows diminishing marginal returns to each input
- Calculate the marginal rate of technical substitution and explain how MRTSAB alters as the firm uses more A, holding output constant
- Does the production function have constant, decreasing, or increasing returns to scale?
The equations:
a) Q(A,B) = 3A + 2B
b) Q(A,B) = 10A0.5B0.5
c) Q(A,B) = A0.25B0.25
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