An economy is described by the following production function: = where Y is the output (real GDP),

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An economy is described by the following production function:

where Y is the output (real GDP), K is the amount of capital, N is labour (number of workers), and A is the total factor productivity.

a. Does it exhibit the diminishing marginal product of capital? Explain. (2)

b. Does it exhibit the constant returns to scale? Explain

Posted Date: Jun 22, 2024 12:05 PM

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An economy is described by the following production function: = where Y is the output (real GDP),

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