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a to b: same as FPM

K-intensive

L-intensive

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Divide Y=f (K,L) by L to express all variables in per-worker terms

Y/L=F(K/L,1)y=f(k)

We have diminishing returns to capital as in (4.3)

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production function

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the amount of K needed b/c of n and d just to keep k constant

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