Homework answers / question archive / Consider the production function for tomatoes: y = AFaSb, where y is the quantity of tomatoes, F is the quantity of fertilizer and S is the number of sprayings of pesticide during the growing season

Consider the production function for tomatoes: y = AFaSb, where y is the quantity of tomatoes, F is the quantity of fertilizer and S is the number of sprayings of pesticide during the growing season

Economics

Share With

Consider the production function for tomatoes: y = AFaSb, where y is the quantity of tomatoes, F is the quantity of fertilizer and S is the number of sprayings of pesticide during the growing season. All other inputs are fixed and represented by A > 0. The constants a and b are each positive, but each is less than 1.

1. Determine the returns to scale. (2 points)
2. Find the marginal product of fertilizer, and then determine how it responds to the quantity of sprayings by finding

and interpreting the relevant derivative. (3 points)
3. Derive the elasticity of output with respect to sprayings? (2 points)