Question: Suppose that a rm has the production function f [31,22] 2 2 + log[rg + 1} {a} Does the marginal product of factor 1 increase,
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Suppose that a rm has the production function f [31,22] 2 2" + log[rg + 1} {a} Does the marginal product of factor 1 increase, decrease, or stay constant as the amount of factor 1 increases? Does the marginal product of factor 2 increase, decrease, or stay constant as the amount of factor 2 increases? (h}This production function does not satisfy the denition of increasing returns to scale, constant returns to scale, or decreasing returns to scale. How can this he? Find a combination of inputs such that doubling the amount of both inputs will more than double the amount of output. Find a combination of inputs such that doubling the amount of both inputs will less than double output
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