3 Production functions-Will it affect labor productivity 1 answer below »


3 Production functions

Suppose there are two ingredients of production: excellent (K) and drudge (N). Let A be a technological parameter (take it as loving)

Answer the following:

1. Does any of the following production functions demonstrate faithful returns to flake? Justify your response with a one-line proof

(a) Y = AK0.4 N0.6

(b) Y = AKa Nß, with a+ ß>1

(c) Y = min (K; N)

2. Suppose that the issueion function is loving by Y = C + KaN1-a where C is a positive constant. Does an growth in C feign the marginal issue of any ingredient? Will it feign drudge issueivity?