Question: Consider the following production function: f ( L, K) = Bo + BIVLK + B2L + B3K (a) If f(L, K) is to exhibit constant

Consider the following production function: f ( L, K) = Bo

Consider the following production function: f ( L, K) = Bo + BIVLK + B2L + B3K (a) If f(L, K) is to exhibit constant returns to scale (CRS), what restrictions should be placed on the parameters Bo. ..., B3? (b) Show that in the CRS case, this function exhibits diminishing marginal product of labor and diminishing marginal product of capital. Then show the marginal product functions are homogeneous of degree zero

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