Which of the following are desired properties of the aggregate production function? (Make sure you understand...

 

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Which of the following are desired properties of the aggregate production function? (Make sure you understand the reason why these are desired properties) Output is decreasing in all its factors Output is constant in all its factors Output is increasing in all its factors. The production function has decreasing returns to scale The production function has constant returns to scale The production function has increasing returns to scale Marginal returns are decreasing Marginal returns are constant Marginal returns are increasing It implies that factor shares are decreasing It implies that factor shares are constant It implies that factor shares are increasing 2 1 point. Which of the following production functions satisfy all the desired properties from the previous question? F(K, L) AK0.3 0.3 F(K, L) = AKL F(K,L) AKL¹-a F(K,L) AK0-3L0.7 F(K, L) = AK + L 000000000000 Which of the following are desired properties of the aggregate production function? (Make sure you understand the reason why these are desired properties) Output is decreasing in all its factors Output is constant in all its factors Output is increasing in all its factors. The production function has decreasing returns to scale The production function has constant returns to scale The production function has increasing returns to scale Marginal returns are decreasing Marginal returns are constant Marginal returns are increasing It implies that factor shares are decreasing It implies that factor shares are constant It implies that factor shares are increasing 2 1 point. Which of the following production functions satisfy all the desired properties from the previous question? F(K, L) AK0.3 0.3 F(K, L) = AKL F(K,L) AKL¹-a F(K,L) AK0-3L0.7 F(K, L) = AK + L 000000000000

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Explanation 1 Output is increasing in all its factors Upon i... View the full answer