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16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes the MPKS in the higher TFP column? K MPK for TFP = 1 MPK for TFP = 2 1 4 9. a. the MPKS are all higher

16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes the MPKS in the higher TFP column? K MPK for TFP = 1 MPK for TFP = 2 1 4 9. a. the MPKS are all higher

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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15 is B, answer 16 only
a negative sign to indicate that.) 15. For this question use this aggregate production function as a model of output. Y = A x VK × vĪ The marginal product of capital can be defined as the extra output (Y) that would be produced if you increased the capital (K) by one unit. For simplicity assume A = L = 1. Fill in the MPK for each level of capital in the table. K MPK 1 4 9. What do you notice about the MPK as K increases while Land A are held fixed? a. it gets smaller and smaller b. it gets larger and larger c. it stays the same without any change d. it goes down and then back up
Transcribed Image Text:a negative sign to indicate that.) 15. For this question use this aggregate production function as a model of output. Y = A x VK × vĪ The marginal product of capital can be defined as the extra output (Y) that would be produced if you increased the capital (K) by one unit. For simplicity assume A = L = 1. Fill in the MPK for each level of capital in the table. K MPK 1 4 9. What do you notice about the MPK as K increases while Land A are held fixed? a. it gets smaller and smaller b. it gets larger and larger c. it stays the same without any change d. it goes down and then back up
16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes the MPKS in the higher TFP column? K MPK for TFP = 1 MPK for TFP = 2 4 9. a. the MPKS are all higher b. the MPKS are all lower C. some of them are higher and some are lower
Transcribed Image Text:16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes the MPKS in the higher TFP column? K MPK for TFP = 1 MPK for TFP = 2 4 9. a. the MPKS are all higher b. the MPKS are all lower C. some of them are higher and some are lower
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