Let y = f(x1, x2)=x11/2 + x1x2 be a firm’s production function, where x1≥0, x2≥0. Write down the firm’s production possibility set, and its input requirement set.Is this production function concave, quasi-concave?Is this production function homogenous?Find its returns to scale when x1=1, and x2=1.

Answered: Let y = f(x1, x2)=x11/2 + x1x2 be a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Let y = f(x₁, x₂)=x₁^1/2+ x₁x₂ be a firm’s production function, where x₁≥0, x₂≥0.

Write down the firm’s production possibility set, and its input requirement set.
Is this production function concave, quasi-concave?
Is this production function homogenous?
Find its returns to scale when x₁=1, and x₂=1.

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