1- Suppose we have production function F(k,n) = Akan where k denotes the capital stock,...

 

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1- Suppose we have production function F(k,n) = Akan ¹ where k denotes the capital stock, n denotes the number of hours worked, a = .25, and A = 100, (a) why do we assume k ≥ 0? (b) Show that F (k,n) > 0 for k> 0 and n > 0? (c) Show that F > 0 for k> 0 and n > 0? (d) Show that Fkk <0 for k> 0 and n > 0? (e) Show this function satisfies the Inada conditions? 1- Suppose we have production function F(k,n) = Akan ¹ where k denotes the capital stock, n denotes the number of hours worked, a = .25, and A = 100, (a) why do we assume k ≥ 0? (b) Show that F (k,n) > 0 for k> 0 and n > 0? (c) Show that F > 0 for k> 0 and n > 0? (d) Show that Fkk <0 for k> 0 and n > 0? (e) Show this function satisfies the Inada conditions?