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I would like to get help on this problem please Problem 5 Briey answer the following questions: (a) Why does physical capital (as modeled in

I would like to get help on this problem please

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Problem 5 Briey answer the following questions: (a) Why does physical capital (as modeled in the Solow or Ramsey model) exhibit decreasing returns in production? Explain. (b) Give an example of a constant returns to scale production function that we used in class. State the exact formula for your example and illustrate that it indeed exhibits constant returns to scale. (c) Derive economic prots under perfect competition for your example in part (b). (d) Give an example of a production function with increasing returns. State the exact formula for your example and illustrate that it indeed exhibits increasing returns to scale. (e) Why do increasing returns in production cause problems under perfect competi- tion? Briey explain in words

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