Question: Assume that the output function is ( 1 2 ) = 1 a 2 b , where a, b, C are some positive constants. a)For

Assume that the output function is (1 2) = 1a2b, where a, b, C are some positive constants.

a)For which values of a, b and C do we have decreasing scale yields?

b)For which values of a, b and C do we have constant scale yields?

c)For which values of a, b and C do we have increasing scale yields?

d)For which values of a, b and C do we have a decreasing marginal product for 1?

e)For which values of a, b and C do we have a decreasing technical substitution ratio?

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