0.5 Consider the following production function: ƒ(2₁, 22) = 21 +22 a) What kind of returns to scale does this production function exhibit? a. Increasing returns to scale b. Constant returns to scale c. Cannot be determined from the given information d. Decreasing returns to scale b) At (21, 22) = (4,4), the technical rate of substitution between the two inputs 2₁ and 22 is? [note: it is a positive number]

0.5 Consider the following production function: ƒ(2₁, 22) = 21 +22 a) What kind of returns to scale does this production function exhibit? a. Increasing returns to scale b. Constant returns to scale c. Cannot be determined from the given information d. Decreasing returns to scale b) At (21, 22) = (4,4), the technical rate of substitution between the two inputs 2₁ and 22 is? [note: it is a positive number]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3
Lesson 7- Production Question 8
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