Tuesday, 13 December 2011

Formal definitions

Formally, a assembly action \ F(K,L) is authentic to have:

connected allotment to calibration if (for any connected a greater than 0) \ F(aK,aL)=aF(K,L)

accretion allotment to calibration if (for any connected a greater than 1) \ F(aK,aL)>aF(K,L),

abbreviating allotment to calibration if (for any connected a amid 0 and 1) \ F(aK,aL)<="" p="">

where K and L are factors of production, basic and labor, respectively.

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