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micro-production

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micro-production

ritu
31 posts
Q1...can isoquants ever slope upward like indifference curves????explain

Q2...tell whether following prodn functn has-IRS,CRS OR DRS
.......f(k,l)= Ksquare +L......(in this case when we take out lambda common,still we are left with lambda.K+L...which isnt the original productn functn.....
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Re: micro-production

Bellatrix
13 posts
F(k,l) = k2 + l
F(αk, αl) = α2k2 + αl > α(k2 + l) = αF(k,l)  (given α>1)
So Increasing returns to scale
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Re: micro-production

anon_econ
496 posts
In reply to this post by ritu
Ritu in the 2nd question u r trying to find out the degree of homogeneity of the function. But even a non homogeneous function can exhibit IRS/DRS (though not CRS)..
And as far as I know it is possible for isoquants to be positively sloped in some regions, but that would imply that one of the marginal products is negative, and thus no firm would ever choose an input combo that lies in that region.