(04.Suppose we are given (he constant returns to scale (CES) production functionq= { ßa + aa }1/aa. Show that the marginal product of Beta is (g/B) and marginal product of Alpha(q/a)**b. Show that RTS = (2/B); I lence or otherwise shov that the ò =-1/(1-a)1-a

The production function determines all the input bundles that produce the same output level.The…

Q4.Suppose we are given the constant returns to scale (CES) production function q={ßa+aa }1/a a. Show that the marginal product of Beta is (q/B) and marginal product of Alpha (q/a)¹-2 b. Show that RTS = (a/B)¹; Hence or otherwise show that the 6 = 1-2 =1/(1-a)

Q4.Suppose we are given the constant returns to scale (CES) production function q={ßa+aa }1/a a. Show that the marginal product of Beta is (q/B) and marginal product of Alpha (q/a)¹-2 b. Show that RTS = (a/B)¹; Hence or otherwise show that the 6 = 1-2 =1/(1-a)

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

(04.Suppose we are given (he constant returns to scale (CES) production function
q= { ßa + aa }1/a
a. Show that the marginal product of Beta is (g/B) and marginal product of Alpha
(q/a)**
b. Show that RTS = (2/B); I lence or otherwise shov that the ò =-1/(1-a)
1-a

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