Question

4.

Consider a firm which produces according to technology f(X1.2) =
x/32/3.
(*From Tutorial 7)

(a) Show
formally whether this production function exhibits increasing,
constant, or decreas-
Ing return
4. Consider a firm which produces according to technology \( f\left(x_{1}, x_{2}\right)=x_{1}^{1 / 3} x_{2}^{2 / 3} \). (*From Tutorial 7) (a) Show formally whether this production function exhibits i

Answer 1

*From Tutorial 7) (a) Show formally whether this production function exhibits increasing, constant, or decreasing returns to scale. (Do not just add the powers ...

1 answer

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Top answer:

The production function shows the level of production as the inputs

Explanation: