Question: Question 4 (Technology) Determine whether the following production functions have constant returns to scale, decreasing returns to scale, or increasing returns to scale: f(x 1

Question 4 (Technology) Determine whether the following production functions have constant returns to scale, decreasing returns to scale, or increasing returns to scale:

f(x₁, x₂)= 2x₁^0.6x₂^0.6
f(x₁, x₂)= x₁+min(x₁, x₂)
f(x₁, x₂)= x₁^1/2+x₂

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 Economics Questions!

Question 4 (Technology) Determine whether the following production functions have constant returns to scale, decreasing returns to scale, or increasing returns to scale: a) f(x 1 , x 2 )= 2x 1 0.6 x...

1. State whether the following production functions exhibit decreasing returns to scale, constant returns to scale, or increasing returns to scale: a). f(x1, X2) = 5x1 1/4x, 1/4 b). F(K, L) = (K+L)2...

please help with all questions Question 6 2.3 pts 6. What letters represent this country's tariff revenue collected (in this market)? jn. m+n+r mr. Question 7 2.3 pts 7. If a "small\" country (i.e.,...

Exercise 1 Corporation XYZ has the following data on labor input and production of commodity Z for each of the eight production periods. Production 2 3 4 5 6 7 8 Period Labor input 5 4 7 8 2 3 6 1...

Show step by step how you obtained your result in the case of problem solving in order to prevent loosing points.Also,explain in economic terms the meaning of the solutions provided.Observe the time...

Please select one of the options below for question A-H - Depends on region of function - DRS - IRS - CRS For each item below, choose whether the listed production function exhibits constant returns...

For each item below, choose whether the listed production function exhibits constant returns to scale (CRS), increasing returns to scale (IRS) or decreasing returns to scale (DRS): A) q=min{3L,20K}...

Determine Determine Determine whether the following production whether the following production whether the following production whether the following production whether the following production...

Kindly show your steps pletely correct. 1. A production function is given by f(K. L) - L/2+VK. Given this form. MP - 1/2 and MPk - JR. (a) Are there constant returns to scale, decreasing returns to...

Hi I need some help with doing the Long run average total cost table and questions 2, 4 ,5 and 6 Class Work Long Run Costs 1. Use the information in the table to build the LRATC: SRAT Q C1 SRATC2...

A 4-item scale has been developed to measure the level of trust distribution channel members have for one another. The results of reliability analysis using SPSS are on the next page. Respond to the...

How can managers best communicate with people throughout their organization?

If you borrow money on a single - payment loan and discover that you cannot pay it back when it is due, you should: unsecure the loan. negotiate a rollover. pay a prepayment penalty. purchase a...

Peter Drucker is credited with providing the first modern handbook on the subject of Blank _ _ _ _ _ _ . Multiple choice question.financeproductionsalesmanagement

I didnt want to spoil the mood of the party. I wasnt the host, so I didnt want to make a fuss. I was polite at the dinner table but grumbled in the washroom.

Which staff members regularly spend time with the customers? How is the information they gather channeled back into the organization?

Th eir solution was to give me a long-distance number to call.