Zero Sum Games
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Thank you very much Rodrigo! I've read the pages in the test you recommended (well, it's high time...)
The climbing analogy made the concept easier to understand. I know this forum relates to Game Theory more but I certainly hope [View full text and thread]
|01/21/2001 07:27 PM by Brandon; Pages of Nicholson's Microeconomic Theory|
In words, this means:
(1) An additional unit of K makes the MPL vary. Compute the amount of this variation.
(2) An additional unit of L makes the MPK vary. Compute the amount of this variation.
(3) Now, it just happens that both [View full text and thread]
|12/18/2000 10:32 PM by Rodrigo; On Young's theorem and production functions|
Thanks a lot Rodrigo! I understand now. If that were to be put into words, what would that mean? Does it mean that an additional unit of K would be just as efficient as a unit of L on the exact opposite end of the isoquant? [View full text and thread]
|12/18/2000 03:55 AM by Brandon; Yes, I understand now|
Any function with continuous second-order derivatives satisfy this property: their cross second-order derivatives are equal. Such functions may be called "smooth functions". The Cobb-Douglas production function is one of [View full text and thread]
|12/12/2000 09:54 PM by Rodrigo; On a property of the Cobb-Douglas|
Hi! I came across this portion under the chapter of "Production function" which reads,
|12/12/2000 10:17 AM by Brandon; Properties of Cobb-Douglas Production function|
"An increase in labour input has the same impact on the marginal & average products of capital as does an increase in capital inputs on the marginal and average products of labour. The cross derivatives of the Cobb-Douglas function are symmetric."
I don't quite understand. As the marginal product of labour is defined as the change in total product with respect to a unit change in labour with K held constant, how would an increase in L has the same impact on the marginal product of capital then? Thank you! [Manage messages]