Answer to Question #62915 in Macroeconomics for Adam

Question

The production function Y = AK^αL^β with A = 2, α = 0.4 and β = 0.6 exhibits the following
properties: (multiple answers can be correct)
(a) concavity in L
(b) convexity in L
(c) constant returns to scale in K and L (d) homogeneity of degree 1 (in K and L)
(e) increasing returns in K and L

Answer 1

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