Question: I need help with this question EXERCISE 3 Suppose that a firm has the production function f($1, T2) = 271 + log.($2 + 1) (a)

I need help with this question

I need help with this question EXERCISE 3 Suppose that a firm

EXERCISE 3 Suppose that a firm has the production function f($1, T2) = 271 + log.($2 + 1) (a) Does the marginal product of factor 1 increase, decrease, or stay constant as the amount of factor 1 increases? Does the marginal product of factor 2 increase, decrease, or stay constant as the amount of factor 2 increases? H (b)This production function does not satisfy the definition of increasing returns to scale, constant returns to scale, or decreasing returns to scale. How can this be? Find a combination of inputs such that doubling the amount of both inputs will more than double the amount of output. Find a combination of inputs such that doubling the amount of both inputs will less than double output

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!