Consider an economy with the Cobb–Douglas production function: Y = 5K0.²L0.8 K = 130000; L=8000 Round answers to two places after the decimal when necessary. Assuming that Congress cannot dictate how many workers are hired at the mandated wage, calculate what happens to the real wage, employment, output, and the total amount earned by workers. Real wages = $ 6.94 %3D Employment : 48580.00 workers %3D Incorrect Total output 60719.33 units Incorrect

Consider an economy with the Cobb–Douglas production function: Y = 5K0.²L0.8 K = 130000; L=8000 Round answers to two places after the decimal when necessary. Assuming that Congress cannot dictate how many workers are hired at the mandated wage, calculate what happens to the real wage, employment, output, and the total amount earned by workers. Real wages = $ 6.94 %3D Employment : 48580.00 workers %3D Incorrect Total output 60719.33 units Incorrect

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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