**Question: Steady State Economy Investment Calculation**An economy is currently at its steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment?**Instructions:** Do not round until your final answer, when you may round to two decimal places.**Answer Box:**[ ] **Marginal Product of Labor Calculation**The marginal product of labor for a firm is given by the formula:\[ \text{MPL} = 118 - 3H \]where $ H $ represents the number of hours they hire workers to work. **Example Calculations:**- The marginal product of the first hour of labor would be: \[ \text{MPL} = 118 - 3 \times 1 = 115 \] - The marginal product of the second hour of labor would be: \[ \text{MPL} = 118 - 3 \times 2 = 112 \]**Problem Statement:**If the market wage is $19 per hour, how many hours of labor will this firm hire?*Instructions:*- Round your final answer to two decimal places.*Response Box:*_______**Solution Outline:**1. Set up the equation where the marginal product of labor (MPL) is equal to the market wage:\[ 118 - 3H = 19 \]2. Solve for $ H $:\[ 118 - 19 = 3H \]\[ 99 = 3H \]\[ H = \frac{99}{3} \]\[ H = 33 \]Therefore, the firm will hire 33 hours of labor.

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An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places.

An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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