Consider The Following Alternative Functional

Problem 1: Consider the following alternative functional forms for production: . a) Y =aK+bL, for a&gt,0 and b&gt,0. b) Y =AKaLb, for 0&lt,a&lt,1 and b&gt,1For each of them, check whether they satisfy the two key properties required by thegrowth model studied in class (namely, decreasing marginal productivities of inputs,and constant returns to scale).

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Consider the following alternative functional

Question
Problem 1: Consider the following alternative functional forms for production:
. a) Y =aK+bL; for a>0 and b>0
. b) Y =AKaLb; for 0<a<1 and b>1
For each of them, check whether they satisfy the two key properties required by the
growth model studied in class (namely, decreasing marginal productivities of inputs,
and constant returns to scale).

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