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ECOS2001 Tutorial 7
1
ECOS 2001 Tutorial 7
1. Suppose that the production function is CobbDouglas and
( )
12 32
12
1 2
,
fxx
x x
=
.
1.
Write an expression for the marginal product of
1
x
at the point
( )
,
x
x
.
2. The marginal product of
1
x
(increases, decreases, remains constant?) for small increase in
1
x
, holding
2
x
constant.
3. An increase in the amount of
2
x
(increase, leaves unchanged, decreasing?) the marginal
product of
1
x
.
4. What is the technical rate of substitution (TRS) between
2
x
and
1
x
?
5. What is the TRS between
2
x
and
1
x
at the point
( )
3, 2 ?
6. Does this technology have diminishing TRS?
7. This technology demonstrates (increasing, constant, decreasing?) returns to scale.
2. The Ontario Brassworks produces brazen effronteries. Brass is an alloy of copper (
1
x
) and
zinc (
2
x
), used in fixed proportions. The production function is given by
()
{
}
,m
i
n
,
2
=
.
1. Draw a few isoquants for this production function.
2. Is this technology convex?
3. Does this production function exhibit increasing, decreasing, or constant returns to scale?
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This note was uploaded on 04/20/2010 for the course ECOS 2001 taught by Professor None during the One '09 term at University of Sydney.
 One '09
 NONE

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