Question: Consider the production technology y = (x1 + x2)2. (a) Draw a few isoquants. (b) What is the technical rate of substitution? (c) Solve for

Consider the production technology y = (x1 + x2)2.

(a) Draw a few isoquants.

(b) What is the technical rate of substitution?

(d) Is this technology characterized by decreasing, constant, or increasing re- turns to scale?

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