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The table below shows various values of labour (L) ,capital (K) ,and technology (T) for Economies A,B,and C.In each case,the aggregate production function takes the following form:
Y = T ×
TABLE 25-4
-Refer to Table 25-4.Diminishing marginal returns to labour is most evident in the data shown for
Law of Reason
A principle suggesting that the laws governing human conduct should be based on logic, ethics, and rationality rather than on arbitrary dictums or supernatural beliefs.
Hypothetical Imperative
A command or rule that applies conditionally, suggesting action is necessary to achieve a particular end or goal, as opposed to moral absolutes.
Rational Agents
Entities that make decisions by logically assessing options and outcomes to maximize their own benefit.
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