Question: Assume that the output function is (1, 2) = 1 1/2 2 3/2 . a)What is the marginal product of 1 at the point (1,
Assume that the output function is (1, 2) = 11/2 23/2.
a)What is the marginal product of 1 at the point (1, 2).
b)Does the marginal product of 1 increase, decrease or remain constant in small changes of 1, keeping 2 constant?
c)What is the marginal product of 2 at the point (1, 2).
d)The marginal product of 2 increases, decreases or remains constant in small changes of 2, keeping 1 constant?
e)Does the marginal product of 2 increase, decrease or remain constant in small changes of 1, keeping 2 constant?
f)What is the technical reason for the substitution?
g)Does this production function have a declining technical substitution ratio?
h)What scale yields does this production function have?
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