238 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28
tion that z, is given, thus making initial capital a free good.
Restrict the attainable set instead by an arbitrary stipulation
that consumption per worker and capital per worker are to
be held constant over time.
x. =x, 2,=z for all =o
[he new « attainable » set then is given by
{12 a, b, ¢) x=f(2)- Az, x>o, z>o0.
Finally, choose z so as to maximize x, the permanent level of
consumption per worker. This leads to the choice of that value
Zz of z for which.
(13 a, b) f(8)=), so =f) 2%
where f(z) denotes the derivative of f(z).
Figure 7 shows the construction. Because, of the essen-
tiality of labor to production, i.e., assumption (#7 b) as reflected
in (11), there is for any given slope A such that o<<A<f'(0) a
point 2 for which the tangent to the production function per
worker has that slope. To interpret the condition (13 a) note
that, if we hold L fixed, then by the homogeneity of F,
(2,
SF(Z/L, 0 SF Z,
3 ZL) 7
"41 Koopmans - pag. 14