Question: 1.5.9 Prove Eulers theorem that, if f(L, K) is homo geneous of degree g (see Exercise 5.7), then L(0f/0L) + K(0f/0K) = gf(L, K). Given

1.5.9 Prove Euler’s theorem that, if f(L, K) is homo geneous of degree g (see Exercise 5.7), then L(0f/0L) + K(0f/0K) = gf(L, K). Given this result, what can you conclude if a production function has constant returns to scale? Express your results in terms of the marginal products of labor and capital. M 6. Productivity and Technical Change

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