Question: Problem 1 . Determine the returns to scale for the following production functions. Give a mathematical proof of your answer. ( A ) F (
Problem Determine the returns to scale for the following production functions. Give a mathematical proof of your answer.
A
C
B
D
Problem Consider the production functions from Problem
A Find the marginal products of capital and labor.
B Establish whether the marginal products are diminishing. Explain your answer.
C Check whether there is a positive effect of technology on marginal products. Explain your answer.
D Check whether there is factor complementarity. Explain your answer.
Problem Production Functions. Ignore technology A Give an example of the following production functions, and prove that your examples are valid. Here is capital and is labor. If you think such an example does not exist, prove it
A A production function with diminishing marginal products and constant returns to scale.
B A nonCobbDouglas production function with constant returns to scale.
C A production function with rising marginal products.
D A production function without factor complementarity.
E A production function with three factors of production, and constant returns to scale.
F A production function with three factors of production, and factor complemenarity between and and and between and
G A production function with three factors of production, and factor complemenarity between and and but no complementarity between and
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