Question 1(15 Marks): A firm produces one good with a technology given by the production function y = f (x) = x1/3. The factor price
Question 1(15 Marks): A firm produces one good with a technology given by the production function y = f (x) = x1/3. The factor price w and the price p for the good are fixed.
a) Explore whether the production function exhibits increasing returns to scale. ( 3 Marks)
b) Determine the cost function(4 Marks)
c) Determine the demand function for the input factor.(5 Marks)
d) How much will the firm produce? (3 Marks)
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Authors: Dr Chandrakant Singh
1st Edition
9353140986, 9789353140984
