Production function many types/shapes Depends on...? L or K
Production Function --- many types/shapes Depends on …? L or K Q
Production function Constant Returns to Scale (CRs) g Y=L+ K Intuition LorK 1 person 1 spade O 2 people 2 spades MPL Or MPK L or K
Production Function Constant Returns to Scale (CRS) e.g. Y = L + K Intuition: 1 person 1 spade 2 people 2 spades …… L or K Q Y MPL or MPK L or K Q