FIGURES FOR
CHAPTER 7
APPLICATIONS
TO
PRODUCTION FUNCTIONS
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©2005 Brooks/Cole - Thomson Learning
Figure 7.1
Diminishing marginal returns.
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Figure 7.2
The Cobb-Douglas production function
fitted to their data.
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Figure 7.3
Capital’s share of output, 1970–2001.
Source: OECD, ratio of gross operating surplus
and mixed income to GDP (income approach).
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Figure 7.4
Solow’s data on the factor share of capital, 1909–1949.
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Figure 7.5
Solow’s data on labor productivity and capital
per worker, 1909–1949.
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Figure 7.6
Solow’s calculations.
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Figure 7.7
Solow found that
productivity
increases are
primarily due to
technical change
rather than capital
accumulation—shifts
upward in the
production function
rather than movements along it.
©2005 Brooks/Cole - Thomson Learning
Figure 7.8
Alternative substitution
possibilities. MRTS,
marginal rate of
technical substitution.
©2005 Brooks/Cole - Thomson Learning