Explore BrainMass

# Production Theory Functions

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Please open the word file to view the mathematical notations.

Question
Consider a firm with production function .
(a) Sketch the isoquant diagram of this firm.
(b) Derive the marginal rate of technical substitution between the two inputs. What is the relationship between the marginal rate of technical substitution and the isoquants drawn in subquestion (a).
(c) Does the function exhibit decreasing, constant, or increasing returns to scale? Is homogeneous of some degree k>0?
(d) Write down the firm's cost minimization problem.

https://brainmass.com/economics/factors-of-production/production-theory-functions-182562

#### Solution Preview

Question: Consider a firm with production function
(a) Sketch the isoquant diagram of this firm.
For f = 1, = 1, or 3 = 1 - , or z2 =
For f = 2, = 2, or 3 = 2 - , or z2 =
For f = 3, = 3, or 3 = 3 - , or z2 =
For f = 4, = 4, or 3 = 4 - , or z2 =

(b) Derive the marginal rate of technical substitution between the two inputs. What is ...

#### Solution Summary

The expert examines a firm with production functions. The Isoquant diagram of the firm are sketched.

\$2.49