Consider the long-run production function for the country ABC: y = 2k7y is the per capita...

  

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Consider the long-run production function for the country ABC: y = 2k7y is the per capita GDP and implied TFP indicates to 2 and k represents the capital per worker. The following options are listed in the box below: A. It follows the homogeneous function B. It follows the constant returns to scale C. It shows the diminishing returns to scale D. Implied TFP is not proportional to output E. Keeping the same level of TFP, ABC should increase capital per worker with an increasing rate F. Keeping the same level of TFP, ABC should increase capital per worker with a decreasing rate Select the options (one or more than ones) that will be matched with the given information, and explain your answer. [5] Consider the long-run production function for the country ABC: y = 2k7y is the per capita GDP and implied TFP indicates to 2 and k represents the capital per worker. The following options are listed in the box below: A. It follows the homogeneous function B. It follows the constant returns to scale C. It shows the diminishing returns to scale D. Implied TFP is not proportional to output E. Keeping the same level of TFP, ABC should increase capital per worker with an increasing rate F. Keeping the same level of TFP, ABC should increase capital per worker with a decreasing rate Select the options (one or more than ones) that will be matched with the given information, and explain your answer. [5]

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The detailed answer for the above question is provided below Answer B It follows the constant return... View the full answer