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Suppose that the production function is given by = 0,4K^0,7N ^0,3.Assume that the size of the population, the labour participation rate and the unemployment rate
Suppose that the production function is given by = 0,4K^0,7N ^0,3.Assume that the size of the
population, the labour participation rate and the unemployment rate are all constant.
1) Explain the difference between returns to factors of production and returns to scale.
2)Transform the production function into a relationship between output per worker and capital per worker.
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