Question-5 (Marginal Products and Returns to Scale) function is Cobb-Douglas and f(x1; x2) = x/2x3/2 Suppose the production 1. Write an expression for the marginal product of 21. 2. Does marginal product of ₁ increase for small increases in x1, holding 2 fixed? Explain 3. Does an increase in the amount of 22 lead to decrease the marginal product of x1? Explain 4. What is the the technical rate of substitution between 2 and 21? 5. What is the type of returns to scale of this production function? (Increasing, decreasing, constant) 2

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