Question
The output of a factory is described by the production function(,y ) = 9(xy)^(1/3) 1. Does inputexhibit the Law of Diminishing returns? What about inputy?Explain.
The output of a factory is described by the production function(,y ) = 9(xy)^(1/3)
1. Does inputexhibit the Law of Diminishing returns? What about inputy?Explain.
2. What kind of returns to scale does this production function exhibit? Explain.
3. What is the slope of the isoquant through the input combination(8, 5)?Show your
work. Given an English interpretation of the slope.
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Labor Economics
Authors: George J. Borjas
6th edition
73523208, 2900073523209 , 978-0073523200
