Question: please do it in one hour please urgently... I'll give you up thumb definitely Question 2 Suppose you are producing goods for the handmade site

 please do it in one hour please urgently... I'll give you

please do it in one hour please urgently... I'll give you up thumb definitely

Question 2 Suppose you are producing goods for the handmade site Etsy. Your production function F(T,E) = 11/3E2/3 depends on time T and effort E. Show that the production function has constant returns to scale and, therefore, that the marginal products are positive and decreasing. Provide an intuitive explanation of what a positive and decreasing marginal product means in this context and illustrate your answer graphically. Use a second example from outside economics to complement your answer. [30 marks]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!