(c) [2] Suppose input 2 increases and you are now at the initial point ri = 10 and r2 30. Relative to your answer in part (b), does the marginal product of input 1 decrease, increase, or stay constant? Explain briefly.

(c) [2] Suppose input 2 increases and you are now at the initial point ri = 10 and r2 30. Relative to your answer in part (b), does the marginal product of input 1 decrease, increase, or stay constant? Explain briefly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A: Question is solved below Explanation:

Question

13. Suppose you have a production technology given by f(x1,x2) = min{2æ1, x2} and you are
producing at the point where x1 = 10 and x2 = 20.

(c) [2] Suppose input 2 increases and you are now at the initial point r1 = 10 and r2 = 30.
Relative to your answer in part (b), does the marginal product of input 1 decrease,
increase, or stay constant? Explain briefly.

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