The first derivative of the function is positive,f’>0, which means that an increase in capital per effective labour increases output. Every extra unit of capital per effective labour leads to a smaller marginal product of capital, f’’<0. The marginal product of capital is very high when the capital stock is small (limk->0= f’(k) = ∞) and very low when the capital stock is sufficiently high (lim->∞f’(k)=0).
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