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Question: A genealogical firm called Roots produces its output using only one input. Its production function is f(x) = vx.
(a) Does the firm have increasing, constant, or decreasing returns to scale?
(b) How many units of input does it take to produce 10 units of output? 100 units. If the input costs w per unit, what does it cost to produce 10 units of output?
(c) How many units of input does it take to produce y units of output? y2. If the input costs w per unit, what does it cost to produce y units of output?
(d) If the input costs w per unit, what is the average cost of producing y units?
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