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Economics

Question: Firm's problem . Let the representative firm's production function be Y = zKaN1-a , where z = 3 and a = 1/3.

(a) Check whether this production function satisfy the constant returns to scale assumption.

(b) Derive formulas for the marginal product of labor and the marginal product of capital for this production function. Check whether the production function satisfy the diminishing marginal returns assumption.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92583220

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