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{"ops":[{"insert":"Consider a production function of the form\n\u00a0\nf(x1,x2) = x"},{"attributes":{"script":"sub"},"insert":"1"},{"attributes":{"script":"super"},"insert":"\u03b1"},{"insert":" + x"},{"attributes":{"script":"sub"},"insert":"2"},{"attributes":{"script":"super"},"insert":"\u03b1"},{"insert":"\n\nwith 0 "},{"attributes":{"italic":true},"insert":"< \u03b1"},{"insert":".\n\u00a0\n1.\u00a0\u00a0\u00a0\u00a0For which values of "},{"attributes":{"italic":true},"insert":"\u03b1 "},{"insert":"will this exhibit constant, increasing and decreasing Returns to Scale? \n2.\u00a0\u00a0\u00a0\u00a0What is the TRS ("},{"attributes":{"italic":true},"insert":"Technical Rate of Substitution"},{"insert":")?\n3.\u00a0\u00a0\u00a0\u00a0What is the Elasticity of Substitution?\n\u00a0\n\u00a0\nNow consider the CES ("},{"attributes":{"italic":true},"insert":"Constant Elasticity of Substitution"},{"insert":") production function\n\u00a0\ng(x1,x2) = (x"},{"attributes":{"script":"sub"},"insert":"1"},{"attributes":{"script":"super"},"insert":"\u03b1"},{"insert":" + x"},{"attributes":{"script":"sub"},"insert":"2"},{"attributes":{"script":"super"},"insert":"\u03b1"},{"insert":")"},{"attributes":{"script":"super"},"insert":"1\/\u03b1"},{"insert":"\n\u00a0\n4.\u00a0\u00a0\u00a0\u00a0What is the Return to Scale for the production function "},{"attributes":{"italic":true},"insert":"g"},{"insert":"? \n5.\u00a0\u00a0\u00a0\u00a0What is the TRS and the Elasticity of Substitution for the CES production?\n"}]}
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