Consider the following production functions: 1. Y = AK23L1/3 2. Y = AK + BL 3/4 3. Y = (AK)34L34 4. Y = AH2L For each of the production functions listed above: а. Determine whether the function exhibits CRS, diminishing returns to physical capital (or human capital, when applicable), and diminishing returns to labor. b. Check whether it satisfies the Inada conditions. c. Compute the per capita production function.
Consider the following production functions: 1. Y = AK23L1/3 2. Y = AK + BL 3/4 3. Y = (AK)34L34 4. Y = AH2L For each of the production functions listed above: а. Determine whether the function exhibits CRS, diminishing returns to physical capital (or human capital, when applicable), and diminishing returns to labor. b. Check whether it satisfies the Inada conditions. c. Compute the per capita production function.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section17.2: A Production Function And Economic Growth
Problem 4ST
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![Consider the following production functions:
1. Y = AK2/3L1/3
2. Y = AK + BL
3. Y = (AK)34L3/4
4. Y = AH2L
For each of the production functions listed above:
Determine whether the function exhibits CRS, diminishing returns to physical capital (or
а.
human capital, when applicable), and diminishing returns to labor.
b. Check whether it satisfies the Inada conditions.
c. Compute the per capita production function.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53b3af1e-c2fe-4b64-9d06-accae5ddaf7d%2Fbaf6d7d3-af38-4e3e-ad8f-10c54ff81b23%2Fswwzhv4_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following production functions:
1. Y = AK2/3L1/3
2. Y = AK + BL
3. Y = (AK)34L3/4
4. Y = AH2L
For each of the production functions listed above:
Determine whether the function exhibits CRS, diminishing returns to physical capital (or
а.
human capital, when applicable), and diminishing returns to labor.
b. Check whether it satisfies the Inada conditions.
c. Compute the per capita production function.
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