Question: Consider the Cobb-Douglas production function (, )= 27^0.5^0.3. a. Derive a function for the isoquant representing the combination of and that will cause output to
Consider the Cobb-Douglas production function (, )= 27^0.5^0.3. a. Derive a function for the isoquant representing the combination of and that will cause output to equal 81 units. Display this function if the form = (). b. Mathematically show that this production function has decreasing returns to scale (i.e. scale each input by a constant > 1 and show that this causes output to be scaled by less than ).
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