Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1) consider, α = 0.2 and σ = 0.7. The first factor is...

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Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1) consider, α = 0.2 and σ = 0.7. The first factor is...

Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1)

consider, α = 0.2 and σ = 0.7.

The first factor is currently used in the amount x₁ = 9, and the second factor is used in the amount x₂ = 3.

a) When (x₁,x₂) = (9,3), how much output is being produced?

Output:

b) When (x₁,x₂) = (9,3), what is the marginal product of factor 1?

Marginal product:

c) When (x₁,x₂) = (9,3), what is the average product of factor 1?

Average product:

d) When (x₁,x₂) = (9,3), what is the rate of technical substitution (a positive number)?

Rate of technical substitution:

e) When (x₁,x₂) = (9,3), what is the elasticity of substitution (a positive number)?

Elasticity of substitution:

business economics

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Answer 1

Answer #1

a) y = f(x,x) = ax + (vw) x .7°44 2:02, 0.7 then a) y = f (9, 3) = [.29 + (1213. Jor 0-1 = -03. OER --3/ 7 4 -73. 8o y = $19,

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Answer 2

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Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1) consider, α = 0.2 and σ = 0.7. The first factor is...

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2. Consider the following production function with two inputs X1 and X2. y = x1/2x2/4 a....

3. Consider the following production function with two inputs X1 and x2. y = alnx +...

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uestion 3 (1 point) the production function is f(x1, x2) = x1/21x1/22. If the price of...

In class, we solved the firm's cost-minimization problem when its production functiorn is given by f(x1,...

Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1) consider, α = 0.2 and σ = 0.7. The first factor is...

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Add Answer to: Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1) consider, α = 0.2 and σ = 0.7. The first factor is...

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Add Answer to:
Given production function: y=f(x1,x2)=(α⋅x(σ−1)/σ1+(1−α)⋅x(σ−1)/σ2)σ/(σ−1) consider, α = 0.2 and σ = 0.7. The first factor is...