3(a) A firm's production function is initially Q=VKL. Over time, the production function changes to Q=KL^2 (Assume that L21 and K21). Verify that this change represents technological progress.
3(a) A firm's production function is initially Q=VKL. Over time, the production function changes to Q=KL^2 (Assume that L21 and K21). Verify that this change represents technological progress.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section7.A: Appendix Production Indifference Curves
Problem 2TY
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