Assume y= f(x1, x2) = min(ax, bx2) If bx1 < ax2 what is the marginal...

 

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Assume y= f(x1, x2) = min(axı, bx2) ► If bx1 < ax2 what is the marginal product of the first input? ▸ What is the marginal product of the second input? ► What is the returns to scale? 2. What is TRS if y = f(x1, x2) = ax1 + bx2/2? 3. Assume y = f(x1, x2) = x1 + 2x2. ▸ Draw isoquants for y = 20 and y = 40. 4. Give an example of a production process that is possible to have decreasing marginal product in an input and yet increasing returns to scale. Show your work and explain. Assume y= f(x1, x2) = min(axı, bx2) ► If bx1 < ax2 what is the marginal product of the first input? ▸ What is the marginal product of the second input? ► What is the returns to scale? 2. What is TRS if y = f(x1, x2) = ax1 + bx2/2? 3. Assume y = f(x1, x2) = x1 + 2x2. ▸ Draw isoquants for y = 20 and y = 40. 4. Give an example of a production process that is possible to have decreasing marginal product in an input and yet increasing returns to scale. Show your work and explain.

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1 Given the production function y fx1 x2 minax1 bx2 and bx1 ax2 The marginal product of the first in... View the full answer