Average Labor Productivity (Y/L) 4.56 4.54 4.52 4.50 4.48 4.46 4.44 4.42 4.40 4.38 4.36 4.34 4.32 4.30 4.28 4.26 4.24 4.22 4.20 4.18 4.16 4.14 4.12 4.10 4.08 4.06 4.04 4.02 4.00 3.98 3.96 1.9 2.0 Per Worker Production Function Capital per worker = 2.3 Average labor productivity = 4.36 2.1 Real GDP per capita = 65940.37 2.2 Required investment = 34500.00 Population = 348,800 persons Population, and hence labor, grows at a rate of 5 percent per year. Capital depreciates at a rate of 15 percent per year. In the base year: Capital per Worker (K/L) The graph above shows the per-worker production function for a hypothetical country. We will make 2020 as our base year and study how economic conditions will compare to this year in 2021 under different assumptions about national saving. So, starting from the next question all the questions about economic growth will be about 2021 under different scenarios. Here are the pertinent information about the base year. 2020 (The Base Year) Amount of physical capital (K) = 230,000 units Number of workers (L) = 100,000 persons 2.3 units units 2.4 units units 2.5 2.6 2.7

Average Labor Productivity (Y/L) 4.56 4.54 4.52 4.50 4.48 4.46 4.44 4.42 4.40 4.38 4.36 4.34 4.32 4.30 4.28 4.26 4.24 4.22 4.20 4.18 4.16 4.14 4.12 4.10 4.08 4.06 4.04 4.02 4.00 3.98 3.96 1.9 2.0 Per Worker Production Function Capital per worker = 2.3 Average labor productivity = 4.36 2.1 Real GDP per capita = 65940.37 2.2 Required investment = 34500.00 Population = 348,800 persons Population, and hence labor, grows at a rate of 5 percent per year. Capital depreciates at a rate of 15 percent per year. In the base year: Capital per Worker (K/L) The graph above shows the per-worker production function for a hypothetical country. We will make 2020 as our base year and study how economic conditions will compare to this year in 2021 under different assumptions about national saving. So, starting from the next question all the questions about economic growth will be about 2021 under different scenarios. Here are the pertinent information about the base year. 2020 (The Base Year) Amount of physical capital (K) = 230,000 units Number of workers (L) = 100,000 persons 2.3 units units 2.4 units units 2.5 2.6 2.7

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following equations represent the long-run production functions for four different technologies, where capital and labor are both variable inputs. For each function, indicate whether it exhibits increasing, decreasing, or constant returns to scale. Clearly show your derivations. (Note that in parts a and c, the exponents are decimals.) f(L,K)= 8L²K4 b. f(L,K)= L+7K c. f(L,K)= L³K d. f(L,K)= 4L+K? а. с.
If the cost of an oven is $500, what is the marginal product per dollar spent on capital for the second oven? Read again before you answer. Labor Total Product Capital (ovens) (workers) (cakes) 8 6,000 8 10,000 8 13,000 Type your numeric answer and submit 123
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Consider the isoquant for gelato production as graphed below. Use the graph to answer question 27. Inagedhents A 142 100 2000 Liters of Gelato 20 26 Labor (Emplayges) 27. What is the marginal rate of technical substitution between points A and B? 42 (а) +- 42 (b) 6 (c) 42 (d) It is not possible to determine from this graph.
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Number of Plants (K) Number of Workers (L) Total Production (Y) Marginal Product of Labour Average Product of Labour 1 1 200 1 2 83 1 3 64 1 4 54 1 5 47 1 6 0 Calculate and fill in the total Product column Calculate and fill in the Average Product Column With fixed capital, the firm can increase its marginal Product (MP) by increasing its workers infinitely. Do you agree or disagree with the statement and why? When does diminishing marginal return occur in the above table
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Subpart 1-3
A cookshop hires two chefs. The workload, equipment and materials are evenly distributed. The result is a significant increase in the marginal number of lunch dishes made daily. Then 2 more chefs are hired. Now the workload per chef is lessened and there are conflicts over the use of materials and equipment. There is still an increase in the marginal number of lunch dishes made daily, but the increase occurs at a slower rate than before. This is an example of:
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