5.9 Prove Eulers theorem that, if f(L, K) is homogeneous of degree (see Exercise 5.7), then...
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5.9 Prove Euler’s theorem that, if f(L, K) is homogeneous of degree (see Exercise 5.7), then L( 0f/ 0L) + K( 0f/ 0K) = f(L, K). Given this result, what can you conclude if a production function has constant returns to scale? Express your results in terms of the marginal products of labor and capital. M 6. Productivity and Technical Change
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