Check the following production functions if they meet (i) out increasing L and K, (ii) diminishing marginal product of K and L, (iii) constant return to scale. Y(K, L) = K^(barAlpha) * L^(1-barAlpha) + barA Y(K,L) = K^4 + L^4
Check the following production functions if they meet (i) out increasing L and K, (ii) diminishing marginal product of K and L, (iii) constant return to scale. Y(K, L) = K^(barAlpha) * L^(1-barAlpha) + barA Y(K,L) = K^4 + L^4
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Check the following production functions if they meet (i) out increasing L and K, (ii) diminishing marginal product of K and L, (iii) constant return to scale.
Y(K, L) = K^(barAlpha) * L^(1-barAlpha) + barA
Y(K,L) = K^4 + L^4
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