This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: wage is L t L t A t K F t w = )) ( ) ( ), ( ( ) ( and the rate of return on capital is . )) ( ) ( ), ( ( ) ( - = 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 = + + so the sum of factor payments equals net output....
View Full Document
- Spring '10