econ hw #9 - 1. 2.The per-worker production function is the...

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1. 2.The per-worker production function is the positive relationship between output per worker and capital-labor ratio. The per-worker 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 capital-labor ratio. The per-worker 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 per-worker 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 per-worker function is the positive relationship between investment per worker and capital-labor ratio. The investment per-worker function slopes upward because more capital per worker has, more output
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This note was uploaded on 11/15/2008 for the course ECON 100B taught by Professor Wood during the Fall '08 term at University of California, Berkeley.

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econ hw #9 - 1. 2.The per-worker production function is the...

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