A firm's production function is initiallyQ = VKLI|Over time, the production function changes toQ = KVL(Assume that L =>1 and K=>1)- a) Verify that this change represents technologicalprogress.- b) Is this change labor saving, capital saving, or neutral?

Answer (a) A technological process refers to an ability to produce higher units of output (Q)…

Answered: a) Verify that this change represents…

a) Verify that this change represents technological progress. b) Is this change labor saving, capital saving, or neutral?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

A firm's production function is initially
Q = VKL
I|
Over time, the production function changes to
Q = KVL
(Assume that L =>1 and K=>1)
- a) Verify that this change represents technological
progress.
- b) Is this change labor saving, capital saving, or neutral?

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