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420worksheet2ans - For z>0 the above function exhibits CRS b F(K,L = K 2 L 2 F(zK,zL = z 2 K 2 z 2 L 2 = z 2(K 2 L 2 =z 2 Y For z>1 this

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ECO420 Worksheet 2 1. Do the following production functions exhibit CRS, IRS or DRS? Please show complete work to answer this question. a. F(K,L) = F(zK,zL) = = z =zF(K,L) =zY
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Unformatted text preview: For z>0, the above function exhibits CRS. b. F(K,L) = K 2 + L 2 F(zK,zL) = z 2 K 2 + z 2 L 2 = z 2 (K 2 + L 2 ) =z 2 Y For z>1, this function exhibits IRS....
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This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

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