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The utility functions of each consumer are given by: U ( X, Y) = X +Y UB(X,Y) = Min(X, Y) The initial endowments are: A:
The utility functions of each consumer are given by: U ( X, Y) = X +Y UB(X,Y) = Min(X, Y) The initial endowments are: A: X = 4; Y =4 B: X = 2; Y = 2 03. its) For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = 2K + L b) Q = 3L + L/K c) Q = Min(2K,L) d) Q = L*K
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