Homework Answers
8) dy / da1 = A * a1x1(a1-1) x2a2 x3a3 x4a4
dy / da2 = A * x1a1 a2x2(a2-1) x3a3 x4a4
dy / da3= A * x1a1 x2a2 a3x3(a3-1) x4a4
dy / da4 = A * x1a1 x2 x3a3 a4x4(a4-1)
Add Answer to:
8 Find the marginal-product functions for the Cobb-Douglas production func- tion for i 1, 2, 3,...
Find the marginal-product functions for the Cobb-Douglas production func- tion A 0, 0<ai1 for i =...
Find the marginal-product functions for the Cobb-Douglas production func- tion A 0, 0<ai1 for i = 1,2,3,4 a1a2 3 4 = Axj"x2^x3 x4 y
8. Find the marginal-product functions for the Cobb-Douglas production func- tion y = A.X. XXX A>0,0<«;...
8. Find the marginal-product functions for the Cobb-Douglas production func- tion y = A.X. XXX A>0,0<«; <1 for i = 1, 2, 3, 4
Q. 1 Consider an economy with the following Cobb-Douglas production func- tion: Y = 5K The...
Q. 1 Consider an economy with the following Cobb-Douglas production func- tion: Y = 5K The economy has 27,000 units of capital and a labour force of 1,000 workers. a. Derive the equation describing labour demand in this economy as a function of the real wage and the capital stock. b. If the real wage can adjust to equilibrate labour supply and labour de- mand, what is the real wage? In this equilibrium, what are employment, output, and the total...
8 Consider the following 3-input version of a Cobb-Douglas production function y Axxx A 0, 0a,...
8 Consider the following 3-input version of a Cobb-Douglas production function y Axxx A 0, 0a, B, y < 1 Find the first- and second-order partial derivatives, and determine the signs. What is the economic interpretation of the signs of these derivatives?
Assume the following Cobb-Douglas production function: Assume the following Cobb-Douglas production function: Y = AK 0.4...
Assume the following Cobb-Douglas production function:
Assume the following Cobb-Douglas production function: Y = AK 0.4 20.6 If Y=12; K=8; and L=95, answer the following questions (SHOW ALL YOUR WORK): - 1. What is total factor productivity? 2. With your answer in (1), assume L=95 and estimate the production function with respect to K 3. Estimate the marginal product of capital and demonstrate diminishing marginal product of capital 4. Estimate real capital income 5. Estimate the share of capital income...
Question-3 (Marginal Products and Returns to Scale) (30 points) Suppose the production function is Cobb-Douglas and...
Question-3 (Marginal Products and Returns to Scale) (30 points)
Suppose the production function is Cobb-Douglas and f(x1; x2) =
x1^1/2 x2^3/2
1. Write an expression for the marginal product of x1.
2. Does marginal product of x1 increase for small increases in
x1, holding x2 fixed? Explain
3. Does an increase in the amount of x2 lead to decrease in the
marginal product of x1? Explain
4. What is the technical rate of substitution between x2 and
x1?
5. What...
In a Cobb Douglas production function the marginal product of labor will increase if: a. the...
In a Cobb Douglas production function the marginal product of labor will increase if: a. the quantity of labor increases. b. the quantity of capital increases. c. capital's share of output increases. d. average labor productivity decreases.
The Cobb-Douglas production function is given as: Q = AK1-aLa Where 0<a<1, a = .8, K...
The Cobb-Douglas production function is given as: Q = AK1-aLa Where 0<a<1, a = .8, K =4 is the amount of capital, and L=16 is the number of unit of labor, and A = 12 is the measure of TECHNOLOGY INDEX a) Find the real wage of labor (marginal product of labor), W/P, (b) Find rate of return of capital (marginal product of capital), and (c) Discuss the insights of your findings. (d) Why is there not a large amount...
8. Explain how three of the most common production functions (Linear, Cobb Douglas and Leontief) are...
8. Explain how three of the most common production functions (Linear, Cobb Douglas and Leontief) are particular cases of the Constant Elasticity of Substitution production function.
A consumer who lives for two periods has a standard Cobb-Douglas utility func- tion: u(c1,c2) =...
A consumer who lives for two periods has a standard Cobb-Douglas utility func- tion: u(c1,c2) = ccm, where Ct = consumption in period t and a + b = 1. Her income in period one is I1 = 500 and 12 = 400, and she can lend or borrow at interest rate r = 0.2. (a) Find the optimal consumption demand. (b) What values of a, if any, makes the consumer a borrower? Interpret this result. (c) Suppose now that...
Find the marginal-product functions for the Cobb-Douglas production func- tion A 0, 0<ai1 for i = 1,2,3,4 a1a2 3 4 = Axj"x2^x3 x4 y
8. Find the marginal-product functions for the Cobb-Douglas production func- tion y = A.X. XXX A>0,0<«; <1 for i = 1, 2, 3, 4
Q. 1 Consider an economy with the following Cobb-Douglas production func- tion: Y = 5K The economy has 27,000 units of capital and a labour force of 1,000 workers. a. Derive the equation describing labour demand in this economy as a function of the real wage and the capital stock. b. If the real wage can adjust to equilibrate labour supply and labour de- mand, what is the real wage? In this equilibrium, what are employment, output, and the total...
8 Consider the following 3-input version of a Cobb-Douglas production function y Axxx A 0, 0a, B, y < 1 Find the first- and second-order partial derivatives, and determine the signs. What is the economic interpretation of the signs of these derivatives?
Assume the following Cobb-Douglas production function:
Assume the following Cobb-Douglas production function: Y = AK 0.4 20.6 If Y=12; K=8; and L=95, answer the following questions (SHOW ALL YOUR WORK): - 1. What is total factor productivity? 2. With your answer in (1), assume L=95 and estimate the production function with respect to K 3. Estimate the marginal product of capital and demonstrate diminishing marginal product of capital 4. Estimate real capital income 5. Estimate the share of capital income...
Question-3 (Marginal Products and Returns to Scale) (30 points)
Suppose the production function is Cobb-Douglas and f(x1; x2) =
x1^1/2 x2^3/2
1. Write an expression for the marginal product of x1.
2. Does marginal product of x1 increase for small increases in
x1, holding x2 fixed? Explain
3. Does an increase in the amount of x2 lead to decrease in the
marginal product of x1? Explain
4. What is the technical rate of substitution between x2 and
x1?
5. What...
A consumer who lives for two periods has a standard Cobb-Douglas utility func- tion: u(c1,c2) = ccm, where Ct = consumption in period t and a + b = 1. Her income in period one is I1 = 500 and 12 = 400, and she can lend or borrow at interest rate r = 0.2. (a) Find the optimal consumption demand. (b) What values of a, if any, makes the consumer a borrower? Interpret this result. (c) Suppose now that...
Most questions answered within 3 hours.
-
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 52 seconds from now -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 5 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 9 minutes ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 1 hour ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 1 hour ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 1 hour ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 1 hour ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 1 hour ago -
Why are polymers not typically casted into products?
asked 1 hour ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 2 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 1 hour ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 1 hour ago