Question
Using the following production function: f(x 1 ,x 2 )=(x 1 1/2 +x 2 1/3 ) 3 a.How much of x 1 can the firm
Using the following production function: f(x1,x2)=(x11/2 +x21/3)3
a.How much of x1 can the firm give up for one more unit of x2 if it wants to have the same level of output?
b. Create a graph for the isoquant q=4.
c. Create a graph for the isoquant q=9.
d. From the isoquants drawn, is the firm displaying decreasing, increasing, or constant returns to scale?
e. Does the production process have global returns to scale that match your results from part D? Remember that global returns to scale must hold for all possible values of x1 and x2.
I would like an original answer as similiar questions posted appear to be incorrect.
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