Question: 1 . Is the production function f ( x 1 , x 2 ) = x 1 / 2 1 x 3 / 4 2
Is the production function fx x x x constant returns, increasing returns, or decreasing returns to scale? Suppose x and x are used in fixed proportions and fx x minx xa Suppose that x x What is the marginal product of x What is the marginal product of x Is f constant, increasing, or decreasing returns? b Suppose that x x What is the marginal product of x What is the marginal product of x Suppose the production function is CobbDouglas and fx x x x a Write an expression for the marginal products of x and xb Is the marginal product of x increasing or decreasing for small increases in x holding x fixed? c Is the marginal product of x increasing or decreasing for small increases in x holding x fixed?
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