Consider the production function ? = ?? ?? ? where ? is output,
? is capital, ? is labour and ?, ? and ? are positive
parameters.
a. Derive the parametric conditions under which production
exhibits CRS, IRS and DRS, respectively.
b. Let ?(?,?0) be the isoquant associated with output level ?0.
Derive the expression for ?(?,?0). In a graph, illustrate this
function and the effect of an innovation represented by an increase
in the value of ?.
c. For...