Question: 1 . Is the production function f ( x 1 , x 2 ) = x 1 / 2 1 x 3 / 4 2

1. Is the production function f(x1, x2)= x 1/21 x 3/42 constant returns, increasing returns, or decreasing returns to scale? 2. Suppose x1 and x2 are used in fixed proportions and f(x1, x2)= min[x1, x2].(a) Suppose that x1< x2. What is the marginal product of x1? What is the marginal product of x2? Is f constant, increasing, or decreasing returns? (b) Suppose that x1= x2=20. What is the marginal product of x1? What is the marginal product of x2?3. Suppose the production function is Cobb-Douglas and f(x1, x2)= x 1/21 x 3/22.(a) Write an expression for the marginal products of x1 and x1.(b) Is the marginal product of x1 increasing or decreasing for small increases in x1, holding x2 fixed? (c) Is the marginal product of x2 increasing or decreasing for small increases in x2, holding x1 fixed?

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