which of the following functions satisfy the following properties: i) Increasing in both inputs. ii) Diminishing marginal products. iii) Constant returns to scale. iii) Complementarity between capital and labor.

which of the following functions satisfy the following properties: i) Increasing in both inputs. ii) Diminishing marginal products. iii) Constant returns to scale. iii) Complementarity between capital and labor.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

which of the following functions satisfy the following properties:

i) Increasing in both inputs.

ii) Diminishing marginal products.

iii) Constant returns to scale.

iii) Complementarity between capital and labor.

a) Y=K^0.5^NO.7
b) Y= 2K+3N
c)Y = K^0.3N^0.7
d) Y= 2N+2
Use the fact that given a function of the form Y=K^aN^B marginal products are given by
MPN=BK^aN^B-1, MPK=aK^a-1N^B

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