Suppose that the production function is the following: Yt = A[Kt^(1/) + (1 )Nt^(1/)]^(/1). It is assumed that the parameter 0 and 0 < < 1.

(a) Prove that this production function features constant returns to scale.

(b) Compute the first partial derivatives with respect to Kt and Nt . Argue that these are positive.

(c) Compute the own second partial derivatives with respect to Kt and Nt . Show that these are both negative.