New answers tagged solow
5
These two assumptions are not necessarily contradictory. Just check whether the assumptions are satisfied by any candidate function. For example, take $F(K,N) = K^{\alpha}N^{1-\alpha}$, with $\alpha \in (0,1)$.
Constant returns to scale:
For any scaling factor $c \in (0, \infty)$:
$$F(cK,cN) = (cK)^{\alpha}(cN)^{1-\alpha} = c^{\alpha}c^{1-\alpha} K^{\alpha}N^...
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