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Answer to Question #62852 in Macroeconomics for Gian
Question #62852
The production function Y = AKαLβ with A = 2, α = 0.4 and β = 0.6 exhibits the following
properties:
(a) concavity in L
(b) convexity in L
(c) constant returns to scale in K and L (d) homogeneity of degree 1 (in K and L) (e) increasing returns in K and L
properties:
(a) concavity in L
(b) convexity in L
(c) constant returns to scale in K and L (d) homogeneity of degree 1 (in K and L) (e) increasing returns in K and L
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