ZuoTi.Pro
Question

4. Suppose that the production is described by Y = F(KL) = AK0.40.6 where A is a constant greater than zero that measures the
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Y = A x 0.4 0.6 - Y= (looy ( 2006 = 2.511(6.034) = Real Wage - MPLE 0.6 Ak coit MPL = 0.6 i/logo.4 15. sob ( ₂04 = 0.4547 Rea

0 0
Add a comment
Know the answer?
Add Answer to:
4. Suppose that the production is described by Y = F(KL) = AK0.40.6 where A is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E...

    An economy produces with the production technology Y = F(K, EL) = K^1/3 (EL)^2/3, where E is a labor-augmenting technology. Population grows at 2% per year and E grows at 3% per year. The depreciation rate is 5% and the saving rate is 40%. The economy is in steady state. a. What is the growth rate of each of the following: K/EL, Y/EL, EL, Y, Y/L, K/Y, C b. At what rate do wages and the capital rental rate grow?...

  • Suppose a firm’s production function is Y=f(K,L) and has the following: Output = 5,000 Wage rate...

    Suppose a firm’s production function is Y=f(K,L) and has the following: Output = 5,000 Wage rate = 40 Marginal product of labor = 5 Labor = 100 Rental rate = 250 Capital = 75 Marginal Product of capital = 20 Price = 10 A. What is the firm’s total revenue? B. What is the firm’s total cost? C. What is the profit for the firm? D. What is the real wage rate for this firm? E. What is the real...

  • 1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced pe...

    1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced per year, K is the machine-hours of capital, and L is the man-hours of labor. Suppose K = 600. a. Draw a graph of the production function over the range L = 0 to L = 500, putting L on the horizontal axis and on the vertical axis. Over what range of L does the production function...

  • 1. Consider the following production functions. In each case determine if: • the function is Cobb...

    1. Consider the following production functions. In each case determine if: • the function is Cobb Douglas (Y = AK 11-a). If the function is Cobb Douglas, what is the value of the parameter a? • Do capital and labor exhibit diminishing returns. Explain your thinking using algebra / calculus /a graph etc. (a) F(K, L) = 27K+15VL (b) F(KL) = 5K + 3L (c) F(KL) = K0.5 0.5 (a) F(KL) - VK2 + L2 2. Suppose that the production...

  • According to the neoclassical theory of distribution, in an economy described by a Cobb Douglas production...

    According to the neoclassical theory of distribution, in an economy described by a Cobb Douglas production function, workers should experience high rates of real wage growth when a. marginal labor productivity is growing rapidly b. the capital stock is growing slowly c. the labor force is growing rapidly. d. labor productivity is growing slowly

  • 8. Suppose that the production function is Y=5K0.5N0.5. With the production function, the marginal product of...

    8. Suppose that the production function is Y=5K0.5N0.5. With the production function, the marginal product of labor is MPN=0.5K0.5N-0.5. The capital stock is K=30. The labor supply curve is NS=100[(1-t)w]2, where w is the real wage rate, t is the tax rate on labor income, and hence (1-t)w is the after-tax real wage rate. a)      Assume that the tax rate on labor income, t, equals zero. Find the equation of the labor demand curve. Calculate the equilibrium levels of the real...

  • Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where...

    Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where Y is GDP per capita, A is Total Factor Productivity, K is physical capital per worker, and L is human capital per worker. Which of the following is true about this production function? A.)There are diminishing returns to increases in Total Factor Productivity B.)Pluto only needs human capital per labor to be above zero to have production in its economy C.)There are diminishing returns...

  • Consider an economy that uses two factors of production, capital (K) and labor (L), to produce...

    Consider an economy that uses two factors of production, capital (K) and labor (L), to produce two goods, good X and good Y. In the good X sector, the production function is X = 4KX0.5 + 6LX0.5, so that in this sector the marginal productivity of capital is MPKX = 2KX-0.5 and the marginal productivity of labor is MPLX = 3LX-0.5. In the good Y sector, the production function is Y = 2KY0.5 + 4LY0.5, so that in this sector...

  • Suppose that the production function is Y = 9 60.500.5 With this production function, the marginal...

    Suppose that the production function is Y = 9 60.500.5 With this production function, the marginal product of labor is MPN = 4.5 K.5/10.5 The labor supply curve is NS = 105 x[(1 – t)xw], where w is the real wage rate, t is the tax rate on labor income, and hence (1 – t) xw is the after-tax real wage rate. The capital stock is K = 25. Assume that the tax rate on labor income, t, equals zero...

  • 3. Suppose a firm has the production function Q = 50 KL 1) If the wage...

    3. Suppose a firm has the production function Q = 50 KL 1) If the wage rate is $10 per unit of labor and the rental rate of capital is $5 per unit of capital, how much capital and labor should the firm employ in the long run to minimize the cost of producing 40,000 units? 2) Using the solution in part 1), what will the firm’s long-run total cost be?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT