Question: 1. Show that the aggregate production function in this model is: Why have we assumed < 1 /(1 -a)? Show that the aggregate production function

1. Show that the aggregate production function in this model is:

Why have we assumed < 1 /(1 -a)? Show that the aggregate production function has increasing returns to (K, L 1) whenever ¢> 0. Show also that if tJ> = 1 it has constant returns to K1 alone.

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