In general, a production function (which characterizes the production process of a firm) does not need...

 

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In general, a production function (which characterizes the production process of a firm) does not need to exhibit any, or all of the following: diminishing MRTS, diminishing MPs (diminishing MP, or MPK), and decreasing return to scale (RTS). Use graphic examples with some numeric numbers to illustrate the following possibilities. (You do not necessarily have to specify a production function, but it is acceptable.) Choose THREE out of the following bullets. If you answer 4, your extra answer will be considered for 0.2 bonus point. If you answer 5, your extra two answers will be considered for 0.4 bonus point. • A scenario with constant MRTS, and constant return to scale • A scenario with constant MRTS, and increasing return to scale A scenario with constant MRTS, and diminishing MPs (diminishing MPL and MPK) A scenario with diminishing MRTS, diminishing MP (MPL and MPK), and constant return to scale A scenario with diminishing MRTS, and decreasing return to scale A scenario with diminishing MRTS, and increasing MP (MPL and MPK) A scenario with diminishing MRTS, one MP is increasing, and one MP is diminishing (e.g., constant MPK and decreasing MPL, or vice versa) In general, a production function (which characterizes the production process of a firm) does not need to exhibit any, or all of the following: diminishing MRTS, diminishing MPs (diminishing MP, or MPK), and decreasing return to scale (RTS). Use graphic examples with some numeric numbers to illustrate the following possibilities. (You do not necessarily have to specify a production function, but it is acceptable.) Choose THREE out of the following bullets. If you answer 4, your extra answer will be considered for 0.2 bonus point. If you answer 5, your extra two answers will be considered for 0.4 bonus point. • A scenario with constant MRTS, and constant return to scale • A scenario with constant MRTS, and increasing return to scale A scenario with constant MRTS, and diminishing MPs (diminishing MPL and MPK) A scenario with diminishing MRTS, diminishing MP (MPL and MPK), and constant return to scale A scenario with diminishing MRTS, and decreasing return to scale A scenario with diminishing MRTS, and increasing MP (MPL and MPK) A scenario with diminishing MRTS, one MP is increasing, and one MP is diminishing (e.g., constant MPK and decreasing MPL, or vice versa) In general, a production function (which characterizes the production process of a firm) does not need to exhibit any, or all of the following: diminishing MRTS, diminishing MPs (diminishing MP, or MPK), and decreasing return to scale (RTS). Use graphic examples with some numeric numbers to illustrate the following possibilities. (You do not necessarily have to specify a production function, but it is acceptable.) Choose THREE out of the following bullets. If you answer 4, your extra answer will be considered for 0.2 bonus point. If you answer 5, your extra two answers will be considered for 0.4 bonus point. • A scenario with constant MRTS, and constant return to scale • A scenario with constant MRTS, and increasing return to scale A scenario with constant MRTS, and diminishing MPs (diminishing MPL and MPK) A scenario with diminishing MRTS, diminishing MP (MPL and MPK), and constant return to scale A scenario with diminishing MRTS, and decreasing return to scale A scenario with diminishing MRTS, and increasing MP (MPL and MPK) A scenario with diminishing MRTS, one MP is increasing, and one MP is diminishing (e.g., constant MPK and decreasing MPL, or vice versa) In general, a production function (which characterizes the production process of a firm) does not need to exhibit any, or all of the following: diminishing MRTS, diminishing MPs (diminishing MP, or MPK), and decreasing return to scale (RTS). Use graphic examples with some numeric numbers to illustrate the following possibilities. (You do not necessarily have to specify a production function, but it is acceptable.) Choose THREE out of the following bullets. If you answer 4, your extra answer will be considered for 0.2 bonus point. If you answer 5, your extra two answers will be considered for 0.4 bonus point. • A scenario with constant MRTS, and constant return to scale • A scenario with constant MRTS, and increasing return to scale A scenario with constant MRTS, and diminishing MPs (diminishing MPL and MPK) A scenario with diminishing MRTS, diminishing MP (MPL and MPK), and constant return to scale A scenario with diminishing MRTS, and decreasing return to scale A scenario with diminishing MRTS, and increasing MP (MPL and MPK) A scenario with diminishing MRTS, one MP is increasing, and one MP is diminishing (e.g., constant MPK and decreasing MPL, or vice versa)

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ANSWER Lets consider three scenarios Scenario with Constant MRTS and Constant Return to Scale Graphi... View the full answer