Assume that the aggregate production function for an


Assume that the aggregate production function for an economy is described by: where 0 < α < 1. a. Show the production function has the property of constant returns to scale. b. Obtain the per capita production function (Hint: Divide the above production function by L, and express all variables in per capita terms; e.g. y = Y/L, k = K/L using lowercase letters to denote per capita variables). c. Draw the per capita production function with k on the horizontal axis and y on the vertical axis. Is it concave downward? Why? 

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Business Economics: Assume that the aggregate production function for an
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