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Suppose the production function is y=f(K,L)=K 3 L, where K is capital input and L is labor input, K>0, L>0. What are the marginal products
Suppose the production function is y=f(K,L)=K3L, where K is capital input and L is labor input, K>0, L>0.
- What are the marginal products of capital and labor repectively?
- Calculate the technical rate of substitution(assume K is on the horizontal axis).
- Dose this production function show diminishing technical rate of substitution(in absolute value) when K increases? Please give a brief proof.
- Prove that this production function features increasing returns to scale for all t>1, where t is a constant.Please give a brief proof.
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