Asked by Evaristi Paulo

A short run equilibriam production function is given as Q= X½ were Q is output and X is input.
a) is the production function concave? Show your working

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Answered by Bot
Yes, the production function is concave. To show this, we can take the second derivative of the production function:

d2Q/dX2 = -1/2X-3/2

Since this is always negative, the production function is concave.

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