Question: Problem 1: A firm has the following production function f (x1, x.) = 4x1 + 2VX A) Does this firm's technology exhibit constant, increasing, or

Problem 1: A firm has the following production function f (x1,

Problem 1: A firm has the following production function f (x1, x.) = 4x1 + 2VX A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the firm's Technical Rate of Substitution? What is the optimality condition that determines the firm's optimal level of inputs? C) Suppose the firm wants to produ input 2 costs Sw2 per unit. What (Your solution should be functic and that input 1 costs Swi per unit and ditional input demand functions? for each input) Problem 1: A firm has the following production function f (x1, x.) = 4x1 + 2VX A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the firm's Technical Rate of Substitution? What is the optimality condition that determines the firm's optimal level of inputs? C) Suppose the firm wants to produ input 2 costs Sw2 per unit. What (Your solution should be functic and that input 1 costs Swi per unit and ditional input demand functions? for each input)

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