AK
- Domain
- k ≥ 0
- Minimum
- f(0) = 0, attained
- Maximum
- None; output rises without bound
What to notice. A straight line with constant marginal product A. Raising A rotates the line upward.
Why it matters in AK. With saving rate s, depreciation δ and population growth n, per-worker capital grows at sA − (δ + n).
Cobb-Douglas
f(k)=Ak1/3 f′(k)=3Ak−2/3 f′′(k)=−92Ak−5/3 - Domain
- k ≥ 0
- Minimum
- f(0) = 0, attained
- Maximum
- None; output rises without bound
What to notice. Increasing and strictly concave. The marginal product falls toward zero.
Where it appears. Diminishing returns give the Solow and Ramsey models a steady state.
CES
f(k)=A(31k+32)2 f′(k)=9A(1+2/k) f′′(k)=−9Ak−3/2 - Domain
- k ≥ 0
- Minimum
- f(0) = 4A/9 = 0.44, attained
- Maximum
- None; output rises without bound
What to notice. Increasing and strictly concave. The marginal product falls toward A/9 = 0.11, not zero.
Where it appears. With easy substitution, capital alone sustains growth when sA/9 > δ + n.