Suppose that the production function is f(x1, x2) = Cx;"x2" where a, b, and C are positive constants

Economics Feb 25, 2022

Suppose that the production function is f(x1, x2) = Cx;"x2" where a, b, and C are positive constants. (a) For what positive values of a, b, and C are there decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) For what positive values of a, b, and C is there decreasing marginal product for factor 1? (c) For what positive values of a, b, and C is there diminishing technical rate of substitution?