if a = 2.50, b = 0.60, and c = 1, the marginal products of x₁, x₂, and x₃ (in this order)are A)increasing, decreasing, and constant. B)decreasing, increasing, and decreasing. C)all increasing. D)all decreasing. E)all increasing if A 1.

Question

if a = 2.50, b = 0.60, and c = 1, the marginal products of x₁, x₂, and x₃ (in this order)are A)increasing, decreasing, and constant. B)decreasing, increasing, and decreasing. C)all increasing. D)all decreasing. E)all increasing if A> 1.

Quizplus · Accepted Answer

The marginal products, represented by the coefficients 2.50, 0.60, and 1, indicate how the output changes with a one-unit increase in each respective input. A marginal product of 2.50 suggests increasing returns to scale for the first input, 0.60 indicates decreasing returns for the second input, and a constant value of 1 for the third input suggests constant returns to scale.

If a = 250, B = 0