Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

1 Faculty of Political Science and Economics, Waseda University, Tokyo, Japan. 2 Faculty of Economics, Toyo University, Tokyo, Japan. In this study, we consider a scenario in which the government ...

1. If marginal product is decreasing, then average product must also be decreasing. 2. For a fixed-proportion technology, inputs cannot be substituted for each other in production. 3. The marginal ...

A production function describes the relation between output and the inputs to a given process. A simple production function might relate output to two inputs, labor and capital. (Capital typically ...