uppose that the production function of a country is given by Y=K3L0.7, where Y is output, L is labour, and K is capital. a)What is the return to scale property of the production function? B)What will happen to output if we double the use of capital and labour? C)Write the production function as a relationship between output per work

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
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2. Suppose that the production function of a country is given by Y=K3L0.7, where Y is output, L is labour, and K is capital.

a)What is the return to scale property of the production function?

B)What will happen to output if we double the use of capital and labour?

C)Write the production function as a relationship between output per worker and capital per worker.

 

2. Suppose that the production function of a country is given by
Y=K0.3L0.7, where Y is output, L is labour, and K is capital.
a) What is the return to scale property of the production function?
b) What will happen to output if we double the use of capital and labour?
c) Write the production function as a relationship between output per worker and
capital per worker.
Transcribed Image Text:2. Suppose that the production function of a country is given by Y=K0.3L0.7, where Y is output, L is labour, and K is capital. a) What is the return to scale property of the production function? b) What will happen to output if we double the use of capital and labour? c) Write the production function as a relationship between output per worker and capital per worker.
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