Part a) The Cob Douglas production function is given as:
To show that this function is homogeneous with degree 3, we introduce be a parameter, t.
Using properties of exponents, we on tinder:
This implies that:
Simplify the exponent of t to get;
Hence the function is homogeneous with degree, 3
Part b) To verify Euler's Theorem, we must show that:
Verifying from the left:
Q•E•D
"An Inquiry into the Nature and Causes of the Wealth of Nations", or "The Wealth of Nations", written by Scottish economist and philosopher Adam Smith. One of the first collected descriptions of what builds a nation's wealth. Written at the beginning of the Industrial Revolution, it covers division of labour, productivity and free markets. Took 10 years to write with reference to 17 years of notes, based off of observations about economic and societal conditions. Offered more practical information for the time to replace mercantilist and physiocratic theories.
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Answer:
Another word for <u>Financial</u> Incentives is "rewards." Generally, these become more effective when couples with <u>Non-Financial</u> incentives.
For example, a <u>high ranking</u> grade in a class means more when it is possible to<u> get cash reward for that</u> grade.
The topic from which this question is derived is related to the study of Labor Grades and Rank and the Impacts of Non-Financial Incentives on Test Performance
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