Consider a representative firm with the following production function Y = ZK" NO.5 where z> 0 is total factor productivi

[answerhappygod]

Consider A Representative Firm With The Following Production Function Y Zk No 5 Where Z 0 Is Total Factor Productivi 1 (28.62 KiB) Viewed 19 times

Consider a representative firm with the following production function Y = ZK" NO.5 where z> 0 is total factor productivity, K is capital, N is the amount of labor, and 0 < a < 1. **Part a (5 marks) Does the production function satisfy constant returns to scale? Note: Constant returns to scale means that if K, N are doubled (or scaled up by a factor À > 1, the resulting output will correspondingly double (or scaled by the same factor λ). **Part b (5 marks) Are the marginal product of labor strictly positive when K, N > 0? **Part c (5 marks) Does the production function satisfy (strictly) diminishing marginal products of labor, respectively?