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Assume you own a business. I have been asked to explain why you might expect (or not) to have a production function of the shape
Assume you own a business. I have been asked to explain why you might expect (or not) to have a production function of the shape we assumed in the video (he means the variable coefficient production), that is, a production function that as a function of labour starts pretty flat then getting steeper and steeper and then becoming flat again.
Should I link it with the theory of marginal productivity of labour/capital?
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