1.
2.The perworker production function is the positive relationship between output per worker and
capitallabor ratio.
The perworker production function slopes upward because more capital per worker has, more output
per worker can produce.
The slope is decreasing because of the diminishing marginal product of
capital.
The saving per worker function is the positive relationship between saving per worker and capitallabor
ratio.
The perworker production function slopes upward because more capital per worker has, more output
per worker can produce, and more money per worker can save. The slope is decreasing because of the
diminishing marginal product of capital. The function is below the perworker production function is
because
only part of the output would be saved, so the saving amount is always less than the output
amount.
The investment perworker function is the positive relationship between investment per worker and
capitallabor ratio.
The investment perworker function slopes upward because more capital per worker has, more output
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 Fall '08
 Wood
 Economics, perworker production function

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