ZuoTi.Pro
Question

An economy has a labor endowment of 18 units. Good x has the production function x...

An economy has a labor endowment of 18 units. Good x has the production function x = 10Lx and good y has the production function y = 2(Ly)^0.5, where Lx and Ly are the labor units allocated to sector x and y, respectively. Find the equation for the PPF

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
An economy has a labor endowment of 18 units. Good x has the production function x...
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 has a labor endowment of 24 units. Good x has the production function x...

    An economy has a labor endowment of 24 units. Good x has the production function x = 10Lx and good y has the production function y = 2(Ly)0.5, where Lx and Ly are the labor units allocated to sector x and y, respectively. Find output x if a third of labor endowment goes to producing good x. 65 70 72 80

  • 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...

  • Maria has a utilty function u(x,y) = min{ 2x, 0.5y} and a labor endowment of 120...

    Maria has a utilty function u(x,y) = min{ 2x, 0.5y} and a labor endowment of 120 units. The production functions are x = 4Lx and y = 12Ly. In this case, what is the optimal labor that should be allocated to producing good x? 51.4 54.5 56.5 62.3

  • Lucky Luke has 100 units of labor, and faces production functions: x = 10Lx and y...

    Lucky Luke has 100 units of labor, and faces production functions: x = 10Lx and y = 6Ly, where Lx and Ly are the labor allocations. Luke has the utility function u(x,y) = xy. In this case, what is the optimal basket of goods is ( x, y ) = Answer= (500, 300)

  • 5. Consider an exchange economy with A and B, where A has an endowment of x...

    5. Consider an exchange economy with A and B, where A has an endowment of x = 5 & y = 25, and B has an endowment of x = 20 & y = 10. Both A and B have the utility function u(x,y) = xy. Say A gives B 6 units of y, and B gives A 3 units of x. After the trade (a.)Both are better off (b.)Only A is better off (c.)Only B is better off (d.)Both...

  • 1. (40 marks) Sylvania is a small open economy producing two products, X and Y, using...

    1. (40 marks) Sylvania is a small open economy producing two products, X and Y, using two factors of production, capital and labour, under constant returns to scale. Capital is sector-specific, while labour is freely mobile between production sectors. Let Qx and Qy be the output quantities, Kx and Ky the capital endowments specific to the two sectors, and Lx and Ly the labour allocations to the two sectors subject to the constraint im- posed by the total endowment, namely...

  • Suppose there are 100 units of good x and 50 units of good y in an...

    Suppose there are 100 units of good x and 50 units of good y in an exchange economy with 2 people. Suppose consumer 1 has a utility function u1(x1,y1)=x1y1 and consumer 2 has a utility function of u2(x2,y2)=(x2y2)^(1/2) a. What is the MRS of person 1 at 25 units of good x and 12.5 units of good y? Express the MRS as a numerical value (one decimal) in terms of units of good y that we can take away if...

  • Suppose that Mia has 10 units of labor and her two production functions are x =...

    Suppose that Mia has 10 units of labor and her two production functions are x = 6Lx and y = 10Ly. In another economy, Mr. Fantastic has 14 units of labor and production functions, x = 4Lx & y = 6Ly. In this case, the PPF for Mia is ____ and the PPF for Mr. Fantastic is ____. Group of answer choices 4x + 6y = 280; 3x + 2y = 168 4x + 6y = 280; 2x + 5y...

  • Information P Flag question Consider a simple exchange economy where there are two producers, one producing...

    Information P Flag question Consider a simple exchange economy where there are two producers, one producing Good X and the other Y. There are in total 100 units of K and 800 units of L in the economy. The production function of X is X (Kx, Lx) = 4Kx + Lx and that of Y is Y(Ky, Ly)= Ky 10.4 L, 0.6 Currently, the y production is using 60 units of K and 60 units of L. Follow the steps...

  • NEED SOLUTION STEP BY STEP PLZ Peter has an endowment of 3 units of good x...

    NEED SOLUTION STEP BY STEP PLZ Peter has an endowment of 3 units of good x and 5 units of good y. He can buy and sell x at a price of $100 and y at a price of $200. He receives an income of $700 as alimony from a former spouse. a. Calculate the amount of x that he could afford if he bought only x and the amount of y he could afford if he bought only y....

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