CFA Level 2 - Endogenous Grwoth Theory growth, returns, factors, capital

linomo

我看了schweser notes的endogenous growth theory後的一段文字有一些不明白，內容如下

If there are constant marginal returns to capital and declining marginal returns to other factors of production (like labor) then there wil be increasing returns to all factor of production.

為什麼constant return to capital and declining marginal return to other factor of production會導致increasing return to all factor of production?

[此贴子已经被作者于2006-9-3 20:05:02编辑过]

jesssyys

It is because when the marginal returns to capital stays constant and your cost of production (as you said labor) decline.. which mean now you need less resource to attain the same amount of output.. that's why ultimately there's an increasing return to all factor of production.