Question: Examine the Cobb-Douglas production function f(x 1 ,x 2 ) = x 1 ^(1/2)*x 2 ^(3/2) (a) Solve for the marginal products of both inputs.

Examine the Cobb-Douglas production function f(x1,x2) = x1^(1/2)*x2^(3/2)

  • (a) Solve for the marginal products of both inputs.
  • (b) Demonstrate whether the marginal products are increasing, decreasing, or constant with respect to the amount of each respective input.
  • (c) Show whether the marginal product of each input is increasing, decreasing, or constant with respect to the amount of the other input.
  • (d) What is the technical rate of substitution of the inputs? Is it decreasing?
  • (e) proof whether the scale of production of this technology is increasing, decreasing, or constant.

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