Consider the following production functions: Y = AK 1/2 L 1/2 2. Y =AK+BL 3. Y = (AK) 2/3 L 2/3 4. Y = AH 1/3 L For each of the production functions...
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Question

Consider the following production functions:

1. Y = AK1/2L1/2

2. Y

=AK+BL

3. Y = (AK)2/3L2/3

4. Y = AH1/3L


For each of the production functions listed above: 

  • Determine whether the function exhibits CRS, diminishing returns to physical capital (or human capital, when applicable), and diminishing returns to labor.
  • Check whether it satisfies the Inada conditions.
  • Compute the per capita production function. 

 

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