Suppose that the production function is f(x1, x2) = (xa1 + xa2) b, where a and b are positive constants.
(a) For what positive values of a and b are there decreasing returns to scale? ________. Constant returns to scale? ________. Increasing returns to scale? ________.
(b) This production function does not satisfy the definition of increasing returns to scale, constant returns to scale, or decreasing returns to scale. How can this be? ________
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 ______.