A country's production is described by the function f(x, y) = 30x y units, when x units of labor and y units of capital were used. a) Compute Jz and f.- b) What is the marginal productivity of labor and the marginal productivity of capital when the amounts expended on labor and capital are 100 units and 30 units, respectively? c) In order to increase the country's productivity, should the government have encouraged capital investment rather than increasing expenditure on labor?

A country's production is described by the function f(x, y) = 30x y units, when x units of labor and y units of capital were used. a) Compute Jz and f.- b) What is the marginal productivity of labor and the marginal productivity of capital when the amounts expended on labor and capital are 100 units and 30 units, respectively? c) In order to increase the country's productivity, should the government have encouraged capital investment rather than increasing expenditure on labor?

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

My question is how to complete the last part talking about the 1200 bushels of corn and 1000 tons of steel.
Assume the production function takes the general form (as in lecture notes) Y = z xF(K,L, A) Z X where all marginal products are positive. Which 3 of the following statements are correct? Select one or more: O a. If A is fixed, then population growth acts as a drag on growth of output per person. b. If A is fixed, then population growth acts as a drag on growth, and so Malthus was correct that population growth will always reverse the impact of technological improvements. Both rises in z and rises in K/L (capital intensity) will boost output per worker. O d. Growth in output per worker can occur due to rises in z (technology) or rises in K/L (capital intensity), or both.
Assume the production function takes the general form: Y=Z*F (K,L,A)where all marginal products are positive.Which 3 of the following statements are correct?a. If A is fixed, then population growth acts as a drag on growth of output per person.b. If A is fixed, then population growth acts as a drag on growth, and so Malthus was correct that populationgrowth will always reverse the impact of technological improvements.c. Both rises in z and rises in K/L (capital intensity) will boost output per worker.d. Growth in output per worker can occur due to rises in z (technology) or rises in K/L (capital intensity), orboth.
Please explain steps to formulate the equation in (i)
If the production function describing an economy is Y= 20 KL23, then the share of income going to capital: O is about 33 percent. O depends on the state of technology. is about 67 percent. depends on the quantities of labor and capital.
Consider the Specific Factors model with two countries, Home and Foreign, with two goods, cars (c) and pharmaceutical drugs (d), and three factors, capital K, skilled labour S, and unskilled labour L. The production functions are given by 1 1 F.(Ke, Le) = K. Lễ and Fa(Ka, Sa) = K}S}. That is, skilled labour is specific to pharmaceutical drugs, and unskilled labour to cars. Suppose that the countries' factor endowments are KH = 2 = KF, 1 and SF LH and LF 3/2, and SH 1/2, so that the total labour force is 2 in %3D both countries. The price of capital is denoted by r, the price of skilled and unskilled labour by ws and Wi. Denote the goods' prices by pc and pa, and normalise pd = 1 for simplicity. The demand for cars and drugs in country j = H, F is given by x and r: 2Yi and x 3 på 3 p where Yi denotes aggregate income in country j. (f) Suppose that now that Foreign has a production technology FF (Ke, S.) = 2K Lề and Ff(La, Sa) = 2K S. %3| Describe the effect of free trade in goods but…
Suppose the production function for widgets is given by: Q = f (K, L) = 2 ∗ KL − K2/2 − L2/2 (a) Suppose L=5 (is fixed), derive an expression for and graph the total product of capital curve (the production function for a fixed level of labor) and the average productivity of capital curve. (b) At what level of capital input does the average productivity reach a maximum? How many widgets are produced at this point? (c) Again, assuming L=5, derive an expression for and graph the MPK curve. At what level of capital input does MPK =0? (d) Does this production function exhibit constant, increasing or decreasing returns to scale?
ANSWER COMPLETE SOLUTION OKAY?
Consider the following production functions: 1. Y = AK2/3L1/3 2. Y = AK + BL 3. Y = (AK)34L3/4 4. Y = AH2L For each of the production functions listed above: Determine whether the function exhibits CRS, diminishing returns to physical capital (or а. human capital, when applicable), and diminishing returns to labor. b. Check whether it satisfies the Inada conditions. c. Compute the per capita production function.
1. Country A and B both have the production functionY = F (K, L) = K ½L ½or Y = K0.5 L0.5 a) What is the per-worker production function, y= f (k)? Please make sure to write specificfunctional form of the per-worker production function. b) Assume that neither country experiences population growth nor technological progressand that 4 percent of capital depreciates each year. Assume further that country A saves 24percent of output each year and country B saves 16 percent of output each year. Using youranswer from part a) and the steady-state condition, find the steady-state level of capital perworker for each country. Then find the steady-state levels of income per worker for eachcountry and steady-state level of consumption per worker for each country.
In class we argued that if people could accumulate human as well as physical capital, the production function would look like the “AK” production function. • (a) If the production function is AK and the savings rate is constant at rate “s”, and the rates of depreciation and populati on growth are δ and n respectively, what would the growth rate of the economy be? • (b) What would be the macroeconomic consequences of decreasing the savings rate in this economy? • (c) What would be the consequences of an increase in fertility in this economy? • (d) Would the consequences of decreasing fertility be UNAMBIGUOUSLY GOOD? • (e) Can human capital grow without bounds? Explain why or why not (make sure you discuss the physical nature of human capital). • (f) What is the growth rate of the economy (in the absence of technological progress) if human capital cannot grow without bounds?
Help me .....