Attached an image Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines),N is labor (the number of workers), and H is human capital (the number of college degrees among theworkers). The production function isY = AKiNiHi1. Show that the production function exhibits constant retums to scale.2. Derive an expression for the marginal product of labor. How does an increase in the amount ofhuman capital affect the marginal product of labor?3. Derive an expression for the marginal product of human capital. How does an increase in theamount of human capital affect the marginal product of human capital?4. What is the income share paid to labor? What is the income share paid to human capital? In thenational income accounts of this economy, what should of total income do you think workersappear to receive? (Hint: consider where the return to human capital shows up.)5. An unskilled worker eams the marginal product of labor whereas a skilled worker eams themarginal product of labor plus the marginal product of human capital. Using your answers toParts 2 and 3, find the ratio of the skilled wage to unskilled wage. How does an increase in theamount of human capital affect this ratio? Explain.6. Some people advocate funding of college scholarships as a way of creating a more egalitariansociety. Others argue that scholarships help only those who are able to go to college. Do youranswers to the preceding questions shed light on this debate?7. Provide the growth accounting equation for the production function with three inputs.

“Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), N is labor (the number of workers), and H is human capital (the number of college degrees among the workers). The production function is Y = AKIN H 1. Show that the production function exhibits constant returns to scale. 2. Derive an expression for the marginal product of labor. How does an increase in the amount of human capital affect the marginal product of labor? 3. Derive an expression for the marginal product of human capital. How does an increase in the amount of human capital affect the marginal product of human capital?

Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), N is labor (the number of workers), and H is human capital (the number of college degrees among the workers). The production function is Y = AKIN H 1. Show that the production function exhibits constant returns to scale. 2. Derive an expression for the marginal product of labor. How does an increase in the amount of human capital affect the marginal product of labor? 3. Derive an expression for the marginal product of human capital. How does an increase in the amount of human capital affect the marginal product of human capital?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500…

A: The loan is the amount of money which would result in the amount of money borrowed and used for…

Q: ow has the supply and demand for a specific product affected your or your family’s purchasing…

A: The market is place of an interaction between the byers and sellers which strike between one another…

Q: Sale on iPhone affects Galaxy Phones Analyze Galaxy Phone

A: previously the market of phones were dominated by Nokia and Motorola but currently the market of…

Q: In which of the service system does the customer affect the time of demand a. Low degree of customer…

A: In a market, when peope enter to make demand for goods and services, there are various factors that…

Q: How do you explain the utility of Publix product or service?

A: Publix is a renowned supermarket chain that offers a wide range of products and services to…

Q: QUESTION 20 YEAR PRODUCT 1988 1989 1990 1991 price: $2.00 quantity: price: $1.00 1,000 $6.00 $8.00…

A: Consumer Price Index or CPI measures the total cost of goods and services that are being purchased…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: Interest Rate iA 0 Ms Quantity of Money MD (Y, P)

A: (a) Calculating M1 and M2M1: This includes the most liquid forms of money:Currency: $95Checkable…

Q: Corelation of purchasing ability of consumers and pricing system provide a case study

A: Pricing refers to the process of determining the monetary value of a product or service that a…

Q: What is the role of technological change in asset improvement?

A: In virtually every sector, new technology is transforming the face of business-from banking to food…

Q: do it without using tables

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Why are celebrities endorsed brands more expensive?

A: The company’s sales and market share of branded items will be increased with the help of celebrity…

Q: What are your three choices for reducing the amount of time spent waiting in traffic? What…

A: as an rational consumer or human beings the use of resources we should prefer in efficient and…

Q: What are the different ways in which personal property can be obtained?

A: Personal property is a type of property that consists of any property except real estate. It's also…

Q: My homework help What happens in the market for beach towels now that the season is over. Graph and…

A: Demand basically refers to the quantity of goods or services that a consumer is willing and able to…

Q: How would present a loss and or an expense or damage claim?

A: Development contracts will by and large accommodate the contractor to guarantee direct loss and…

Q: What is the right amount of variety? Can there be too many varieties of shoes?

A: The monopolistic competitive markets sell differentiated good and this concept of the differentiated…

Q: The costs of owning and operating an asset can be divided into two categories. What are they?

A: According to cost theory, there are two different types of cost associated with any economic…

Q: When would a buyer purchase an imitation meat

A: Meat consumption has several negative influences on the economy. It results in greenhouse emissions…

Q: Can you finish the rest of the chart

A: A variable cost(VC) means expenses are used that increase or fall in the direct extent of production…

Q: You need a car. You decide to purchase a new car for $12,000 and sell it in one year. If you don't…

A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…

Question

Attached an image

Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines),
N is labor (the number of workers), and H is human capital (the number of college degrees among the
workers). The production function is
Y = AKiNiHi
1. Show that the production function exhibits constant retums to scale.
2. Derive an expression for the marginal product of labor. How does an increase in the amount of
human capital affect the marginal product of labor?
3. Derive an expression for the marginal product of human capital. How does an increase in the
amount of human capital affect the marginal product of human capital?
4. What is the income share paid to labor? What is the income share paid to human capital? In the
national income accounts of this economy, what should of total income do you think workers
appear to receive? (Hint: consider where the return to human capital shows up.)
5. An unskilled worker eams the marginal product of labor whereas a skilled worker eams the
marginal product of labor plus the marginal product of human capital. Using your answers to
Parts 2 and 3, find the ratio of the skilled wage to unskilled wage. How does an increase in the
amount of human capital affect this ratio? Explain.
6. Some people advocate funding of college scholarships as a way of creating a more egalitarian
society. Others argue that scholarships help only those who are able to go to college. Do your
answers to the preceding questions shed light on this debate?
7. Provide the growth accounting equation for the production function with three inputs.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define production function

VIEW

Step 2: Show constant returns to scale

VIEW

Step 3: Determine marginal product of labor

VIEW

Step 4: Determine marginal product of human capital

VIEW

Solution

VIEW

Step by step

Solved in 5 steps with 8 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

https://www.youtube.com/watch?v=4rUfoU04QJM please I need a short summary of this video
Please Use excel to solve this problem
Give typing answer with explanation and conclusion Keiko bought a sofa on sale for $292. This price was 27% less than the original price. What was the original price?
Why do some frozen pizzas cost more than others? Think generic versus name brand. Why would a customer opt to purchase a name brand pizza over a generic brand?
Identify an experience good. Identify a search good. How does the retailing of the experience good differ from the retailing of the search good? Do these differences help consumers?
A toy manufacturing firm makes a toy $5 and decide a markup of 3$. Calculate the selling price.