9 1 point (CV) & (KA) If we draw the production function with output on the vertical axis and physical capital on the horizontal axis, the slope of the production function will be decreasing because of diminishing marginal product of capital -DO 000 0 it just looks better that way diminishing potential output diminishing technological change
9 1 point (CV) & (KA) If we draw the production function with output on the vertical axis and physical capital on the horizontal axis, the slope of the production function will be decreasing because of diminishing marginal product of capital -DO 000 0 it just looks better that way diminishing potential output diminishing technological change
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.7P
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