Question: Please help to solve the following question. Please step by step. Thank you. (a) Suppose f(x, y, z) is a function of three variables satisfying

Please help to solve the following question. Please step by step. Thank you.

Please help to solve the following question. Please step by step. Thank

(a) Suppose f(x, y, z) is a function of three variables satisfying f (Xx, Xy, X z) = Xk f(x, y, z), (1) for every ) E R. Show that of Ox of = kf (x, y, z) Hint: Define new variables u = Ax, w = ly, and v = \\z and differentiate with respect to 1. Now, use the fact that the relationship holds for any J E R. (b) Now, show that if f satisfies eq. (1), then fx(Xx, ly, Az) = 1k -1fx(x, y, z) fy (Ax, Ay, Az) = 15 -1fy(2, y, 2) fz (Xx, Ay, Az) = 15-1fz (2, y, 2) (c) In economics, the three factor Cobb-Douglas production function is P = LO KBMY, where P is the total production, L is the amount of labour, K is the amount of capital, M is the amount of materials, and a, B, y E R are constants. Show that this production function satisfies the property in part (a). Give an interpretation of the result in part (b) if a t Sty = 1 (constant returns to scale)

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