Definition and Properties of the Production Function. Lecture II. Overview of the Production Function.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
This notation is sometimes referred to as a netput notation where we do not differentiate inputs or outputs.
Clearly, letting q approach zero yields f(x) approaches f(x*), however, because of the inequality, the left-hand side is less than the right hand side. Therefore, the marginal productivity is non-increasing and, given a strict inequality, is decreasing.