The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...

Question

Question

The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...

The production function
is given by: zF(K,N) = zK^aN^1-a

^{Ask the representative producer's problem by
indicating:

the objectice function , the variables of choice, the constraints
(if they exist).Determine the solution as a function of z, K, α and
w.}

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Add a comment

Answer 2

Similar Homework Help Questions

Suppose the representative firm’s production function is Y = zK 0.5N 0.5 . A. Find the...

Suppose the representative firm’s production function is Y = zK 0.5N 0.5 . A. Find the marginal product of labour. Are there diminishing returns to labour? B. If the real wage paid to labour is w, determine the representative firm’s demand for labour (Nd ) as a function of w, A and K, assuming the firm maximizes profit. C. Find and interpret the following derivatives: (∂N d /∂w), (∂N d /∂z), (∂Nd /∂K). D. Draw rough graphs to explain what...
Returns to scale. A production function has constant returns to scale with

Returns to scale. A production function has constant returns to scale with respect to inputs with inputs K and L if for any z > 0: F(z · K, z ·L) = zF(K, L), For example, for a production function with constant returns to scale, doubling the amount of each input (i.e., setting z = 2) will lead to a doubling of the output from the production function. A production function has increasing returns to scale if for any z >1: F(z ·...
Consider an economy with the following production function zf(k ∗ ) = z (k ∗ )^0.5...

Consider an economy with the following production function zf(k ∗ ) = z (k ∗ )^0.5 1. Solve for golden rule capital per worker and optimal savings rate using the equation characterizing the best steady state. Then, you can back out optimal saving rate given that the best capital per worker. 2. Assume that we are at the steady state with a saving rate s1 < sgold. If the government increases the saving rate up to sgold through policies, what...

Question 13 q=f(n, k) is a short run production function of a representative medical firm. k...

Question 13 q=f(n, k) is a short run production function of a representative medical firm. k stands for a fixed amount of capital. Why? Not yet answered Points out of 1.00 Select one: O a. Production function has only two inputs P Flag question b. None of the choices are correct o O c. Capital is fixed
. Consider the following one-sector, closed, representative household economy. The production technology is given by the...

. Consider the following one-sector, closed, representative household economy. The production technology is given by the Cobb-Douglas production function where Y(t) is the output, K(t) is the capital stock, Lit) is the labor input, all at time t, 0 < a < and A(t) is the technology level at time t. Technological progress is at positive rate g. Let δ denote the depreciation rate for capital. This production function displays constant returns to scale in both K and L, hence...
Competitive Equilibrium (10 pts) Consider an economy with a representative consumer, a representative firm, and a...

Competitive Equilibrium (10 pts) Consider an economy with a representative consumer, a representative firm, and a government. • The consumer can work up to h hours at an hourly rate of w. She only gets utility from consumption and does not care about how much she works. Their preferences are represented by the utility function U(C, l) = ln(C). The consumer also owns an exogenously given K units of capital, which they can rent to the firms at a price...

From now on, let the production function of the firm be Y = 2K*N1-a, where a...

From now on, let the production function of the firm be Y = 2K*N1-a, where a is a parameter between 0 and 1. 4. Verify that this production function has constant return to scale. 5. Derive the marginal product of labor MPx and marginal product of capital MPK. How does MPN change with N and K? 6. Solve the firm's optimization problem analytically. That is, to derive the firm's opti- mal choice as a function of exogenous variables (i.e., in...
Consider a representative firm that produces using capital (K) and labor (N). The firm hires workers...

Consider a representative firm that produces using capital (K) and labor (N). The firm hires workers at wage w and rent capital at rental rate r. Suppose the firm has the production function: F(K, N) = K™NB with a + ß < 1 and a, ß E (0,1) ii) Set up the firm's profit maximization problems and solve for the optimal K*, L*, and 7* (profits) in terms of parameters(12 points) iii) What's the ** when a + b =...
Suppose the representative household has the following utility function: U (C; l) = ln C +...

Suppose the representative household has the following utility function: U (C; l) = ln C + 0:5 ln l where C is consumption and l is leisure. The householdís time constraint is l+N=1 where Ns is the representative householdís labour supply. Further assume that the production function is Cobb-Douglas zK0:5 (N)0:5 where z = 1 and K = 1: 2.1 Assuming that the government spending is G = 0; use the Social Plannerís problem to solve for Pareto optimal numerical...

Consider the production function given by Q = l^α + k^α where α > 0. At...

Consider the production function given by Q = l^α + k^α where α > 0. At what values of α does the production technology exhibit increasing, decreasing, or constant returns to scale? Prove your answer!

The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...

Homework Answers

Add Answer to:
The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...

Post as a guest

Earn Coins

Suppose the representative firm’s production function is Y = zK 0.5N 0.5 . A. Find the...

Returns to scale. A production function has constant returns to scale with

Consider an economy with the following production function zf(k ∗ ) = z (k ∗ )^0.5...

Question 13 q=f(n, k) is a short run production function of a representative medical firm. k...

. Consider the following one-sector, closed, representative household economy. The production technology is given by the...

Competitive Equilibrium (10 pts) Consider an economy with a representative consumer, a representative firm, and a...

From now on, let the production function of the firm be Y = 2K*N1-a, where a...

Consider a representative firm that produces using capital (K) and labor (N). The firm hires workers...

Suppose the representative household has the following utility function: U (C; l) = ln C +...

Consider the production function given by Q = l^α + k^α where α > 0. At...

The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...

Homework Answers

Add Answer to: The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...

Post as a guest

Earn Coins

Add Answer to:
The production function is given by: zF(K,N) = zKaN1-a Ask the representative producer's problem by indicating:...