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Unformatted text preview: wage is L t L t A t K F t w ∂ ∂ = )) ( ) ( ), ( ( ) ( and the rate of return on capital is . )) ( ) ( ), ( ( ) ( δ-∂ ∂ = K t L t A t K F t r a) Show that if F exhibits constant returns to scale then ECN/APEC 6000/7230 Fall 2009 ))]. ( ( ' ) ( )) ( ( )[ ( ) ( t k f t k t k f t A t w-= b) Show that if F exhibits constant returns to scale then ), ( ) ( ) ) ( ( ) ( ) ( t Y t K t r t L t w = + + δ so the sum of factor payments equals net output....
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This note was uploaded on 01/09/2011 for the course ECON 7230 taught by Professor Feigenbaum during the Spring '10 term at Utah Valley University.
- Spring '10