13. Suppose you have a production technology given by f(x1, x2) = min{2x₁, x2} and you areproducing at the point where x₁ = 10 and x₂ = 20.(a) Explain in words what we mean (generally) by the ‘marginal product' of an input inproduction.(b)For the production technology in this question and the initial point x₁ = 10 and x2 =20, what is the marginal product of a small increase in input 1?(c) Suppose input 2 increases and you are now at the initial point x₁ = 10 and x2 = 30.Relative to your answer in part (b), does the marginal product of input 1 decrease,increase, or stay constant? Explain briefly.

For part (c), since the production function at x1=10 and x2=20 is limited by 2x1, increasing x2…

Suppose you have a production technology given by f(x₁,x2) = min{2x₁,x2} and you are producing at the point where x₁ = 10 and x₂ = 20. (a) Explain in words what we mean (generally) by the 'marginal product' of an input in production.

Suppose you have a production technology given by f(x₁,x2) = min{2x₁,x2} and you are producing at the point where x₁ = 10 and x₂ = 20. (a) Explain in words what we mean (generally) by the 'marginal product' of an input in production.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

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Question

13. Suppose you have a production technology given by f(x1, x2) = min{2x₁, x2} and you are
producing at the point where x₁ = 10 and x₂ = 20.
(a) Explain in words what we mean (generally) by the ‘marginal product' of an input in
production.
(b)
For the production technology in this question and the initial point x₁ = 10 and x2 =
20, what is the marginal product of a small increase in input 1?
(c) Suppose input 2 increases and you are now at the initial point x₁ = 10 and x2 = 30.
Relative to your answer in part (b), does the marginal product of input 1 decrease,
increase, or stay constant? Explain briefly.

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