1/2Consider a firm with the production function ƒ(x₁, x₂) = x¹/²x₂. The price of thetwo inputs is ₁ = 2 and w₂ = 1.If x₁ = x₂ = 16, the marginal product of input 1 isWhen ₁ is increasing and 2 stays the same, the marginal product of input 1 isConstantDecreasingIncreasingThis production function hasConstant returns to scaleDecreasing returns to scaleO Increasing returns to scaleNone of the other answers is correctDoes the production function have a diminishing technical rate of substitution?NoYes

Production function shows the functional relationship between the output and inputs. The production…

If x₁ = x₂ = 16, the marginal product of input 1 is two inputs is w₁ = 2 and ₂ = 1. When ₁ is increasing and 2 stays the same, the marginal product of inpu Constant O Decreasing O Increasing This production function has Constant returns to scale Decreasing returns to scale

If x₁ = x₂ = 16, the marginal product of input 1 is two inputs is w₁ = 2 and ₂ = 1. When ₁ is increasing and 2 stays the same, the marginal product of inpu Constant O Decreasing O Increasing This production function has Constant returns to scale Decreasing returns to scale

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1/2
Consider a firm with the production function ƒ(x₁, x₂) = x¹/²x₂. The price of the
two inputs is ₁ = 2 and w₂ = 1.
If x₁ = x₂ = 16, the marginal product of input 1 is
When ₁ is increasing and 2 stays the same, the marginal product of input 1 is
Constant
Decreasing
Increasing
This production function has
Constant returns to scale
Decreasing returns to scale
O Increasing returns to scale
None of the other answers is correct
Does the production function have a diminishing technical rate of substitution?
No
Yes

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