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  • Capital and Labour Relationship

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    Murodullo Bazarov
    17 views2 pages
    The document discusses the relationship between capital and output, which follows an asymptotic formula where capital increases output but at a decreasing rate. It also presents a formula for determining consumption in the second period (C2) based on consumption in the first period (C1), where C1 is raised to a positive power, unlike capital formulas where the independent variable has a negative power. This shows a key difference between production and consumption formulas in their treatment of prior values.

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    The document discusses the relationship between capital and output, which follows an asymptotic formula where capital increases output but at a decreasing rate. It also presents a formula for determining consumption in the second period (C2) based on consumption in the first period (C1), where C1 is raised to a positive power, unlike capital formulas where the independent variable has a negative power. This shows a key difference between production and consumption formulas in their treatment of prior values.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views2 pages

    Capital and Labour Relationship

    Uploaded by

    Murodullo Bazarov
    The document discusses the relationship between capital and output, which follows an asymptotic formula where capital increases output but at a decreasing rate. It also presents a formula for determining consumption in the second period (C2) based on consumption in the first period (C1), where C1 is raised to a positive power, unlike capital formulas where the independent variable has a negative power. This shows a key difference between production and consumption formulas in their treatment of prior values.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    If the relationship between the Capital and Product is asymptotical like in this formula and the graph:

    Where a, b and d>0

    Capital and Output


    0,60 0,50 0,40 0,30 0,20 0,10 0,00 0 10 20 Capital 30 40

    And the formula for finding the Consumption in the second period using the consumption in the first period in this case would be:

    Output

    Where:

    And also:

    Or, for example:


    2,00 1,00 0,00 0 1 2 3 4

    For the graph to look like:

    Major difference between formulas involving Y=f(K) and C2=f(C1) is that in the latter the C1 in the power comes with POSITIVE sign, whereas in the formers, the independent variable (K) comes with NEGATIVE signs, or the expression that has K in the power will have a negative number as its overall power. For example: .

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