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(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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
Transcribed Image Text: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.
Transcribed Image Text:(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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