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Very elementary Q: In a microecon book that I am reading, a production function is a function of K (capital), L (labour), and etc. I guess this is a gross oversimplification for the sake of pedagogy, but what is really the meaning of capital? Is it the amount of money? Advancement of technology? The number of machines? I would appreciate an explanation, since I am studying microecon by myself. [Manage messages]
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