9. Suppose that in the island country, there are a large number of identical firms. Boththe product market and the labor market are perfectly competitive. Each firm hasthe following production function:q= √En + E + ln(5En + 5Ei + 10) – In(10),where En is the employment of native workers and E; is the employment of migrantworkers. Which of the following statements is correct?(a) Native workers and migrant workers are perfect complements in the productionprocess. A sudden increase in E; lowers native employment in the short runas well as in the long run.(b) Native workers and migrant workers are imperfect complements in the produc-tion process. A sudden increase in E; lowers native employment in the shortrun but not in the long run.(c) Native workers and migrant workers are perfect substitutes in the productionprocess. A sudden increase in E; lowers native employment in the short runbut not in the long run.(d) Native workers and migrant workers are perfect substitutes in the productionprocess. A sudden increase in E; lowers native employment in the long runbut not in the short run.(e) Because of the increasing return to scale, a sudden increase in E; has no impacton the labor market of this country.

Perfect substitute production function is the one in which only thing which matters to attain a…

9. Suppose that in the island country, there are a large number of identical firms. Bot the product market and the labor market are perfectly competitive. Each firm ha the following production function: q=√√√En + Ei + ln(5En + 5E; + 10) — In(10), where En is the employment of native workers and E; is the employment of migran workers. Which of the following statements is correct? (a) Native workers and migrant workers are perfect complements in the productio non! :.

9. Suppose that in the island country, there are a large number of identical firms. Bot the product market and the labor market are perfectly competitive. Each firm ha the following production function: q=√√√En + Ei + ln(5En + 5E; + 10) — In(10), where En is the employment of native workers and E; is the employment of migran workers. Which of the following statements is correct? (a) Native workers and migrant workers are perfect complements in the productio non! :.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I don't believe part (b) was fully answered. Can you please solve it with more detail?
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Please answer in detail according to the picture. Show that the cost function is homogeneous of degree 1/(α+β) in output. How do the returns to scale (degree of homogeneity of the production function) relate to the propertiesof the cost function? Does this make sense to you? Explain clearly why.
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1E
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Can you please help solve question 9 a,b and c please show full working so I can compare it to my own work Thank you
Can you help me answer the question g ? Thanks!