Question: Suppose that the production function is f ( x 1 , x 2 ) = C x 1 a x 2 b , where a
Suppose that the production function is where and are positive constants.
a For what positive values of and are there decreasing returns to scale? constant returns to scale?
increasing returns to scale?
b For what positive values of and is there decreasing marginal product for factor
c For what positive values of and is there diminishing technical rate of substitution?
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