4. Suppose the input coefficients matrix is:(0.4 0.2 0.2A = 00.1 00.3 0.3(1)Find (1-A) 1.(i1)Suppose labour is the sole primary input vector. Identify thedirect and indirect effects on the value of employmentfollowing a1 unit drop in final demand for the thirdproduct.What is the employment multiplier?(ii)How is your answer to (ii) altered if in fact only half the(iv)payments to primary inputs are spent on labour?Suppose in fact that for every £ paid to primary inputs in(v)sector 1, only half is paid to labour and in sector 2 none ispaid to labour while in sector 3 all payments to primaryinputs go to labour. How is your answer to (ii) altered now?How is your answer to (ili) altered? (Hint: think about howthe labour; instead of all primary inputs, vector will looknow).

(Note: Since there are multiple parts, only the first three have been solved). An economist named…

4. Suppose the input coefficients matrix is: (0.4 0.2 0.2 A = 0 0.1 0.3 0.3 Find (I-A)-1. (1) Suppose labour is the sole primary input vector. Identify the direct and indirect effects on the value of employment following a1 unit drop in final demand for the third product. What is the employment multiplier? (1i) (i)

4. Suppose the input coefficients matrix is: (0.4 0.2 0.2 A = 0 0.1 0.3 0.3 Find (I-A)-1. (1) Suppose labour is the sole primary input vector. Identify the direct and indirect effects on the value of employment following a1 unit drop in final demand for the third product. What is the employment multiplier? (1i) (i)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

F (L, K) = L0.2K0.7， The wage rate (price per unit of labour) is w = 2 and the capital rental rate (price per unit of capital) is r = 7. Derive the equation of the isoquant for y = 2 (with K in the vertical axis and L in the horizontal axis). Use the first and second derivative to show that this curve is decreasing and convex. Provide a graphical representation of the isoquant indicating at least one combination of labour and capital in this curve.
prove that dMRTS/dL<0 when FKL > 0 where MRTS =MPL/MPK MPL= marginal product of labor MPK - marginal product of capital
Please dont provide answer in handwritten solution...
18
Please give me proper calculation and full explanation otherwose i give multiple downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
16. The following figures relate to one year work in a manufacturing business : Fixed overheads Variable overheads Direct wages Direct materials Sales 12,000 20,000 15,000 41,000 1,00,000 Represent each of the above figures on a break-even-chart, and determine from the chart the break-even point. [Ans. 50,000]
Be the production function Q (K, L) - : (K} +213), that depends on the quantitiess Used from inputs Kand L; and be the point (K, L) = (1,2). (a) What is the effect on the production of an increase of a unit in the amount used of INPUT L, L, Other things being equal?? (b) What is the effect on the production of an increase of 1% in the amount used of INPUT L, Ceteris paribus?
2. Find the Technical Rate of Substitution for the following production fune- tions: A) 3r1 + 2x2 B) (3r1 +2r2) C) (21) (22)
2. Given the following labor data of Meow Company. (1) Number of workers, (2) Number of cakes baked, Y (3) Marginal product of labor, MPN (4) Marginal revenue product of labor, MRPN (when P = RM40) 1 33 55 60 4 77 5 85 6. 89 7 110 a) Calculate and fill in the yellow colored blanks in the above table. (8 marks) b) What can you conclude from your answer? (2 marks)
) Suppose there are two inputs in the production function-labor and capitaland that these two inputs are perfect substitutes. Suppose that the price of capital is 750 GHC per machine per week and that the weekly salary of each . worker is 300 GHC . i) Draw the isocost line ii) With the aid of a graph, explain the effect of a wage decrease on flrm-level employment and output holding initial cost ouday constant.
2. A production function is given by the equation Q = 100L04K0.6 Where L is the number of labour units and K the capital units. a. Find marginal product of labour (Q₁) at L=4 and K=10. Interpret the result. aQ L at L=4 and K-10. ƏL Q b. Find the partial elasticity with respect to labour (EQL = Interpret the result. C. When Q-200, the marginal rate of technical substitution at L=4 is -0.21. Interpret that value (MRTS).
onsider the following production function: q=96LK + 25L2 13 sume capital is fixed at K=25. what level of employment does the marginal product of labor equal zero? e marginal product of labor equals zero when %1 (Enter a numeric response using