Consider the production function: Y = K¹/32/3 Suppose the supply of capital is 8 and the supply of labor is 27. In equilibrium, the real wage rate W/P and the real rental rate of capital R/P will be
Consider the production function: Y = K¹/32/3 Suppose the supply of capital is 8 and the supply of labor is 27. In equilibrium, the real wage rate W/P and the real rental rate of capital R/P will be
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![Consider the production function: Y = K¹/32/3
Suppose the supply of capital is 8 and the supply of labor is 27. In equilibrium, the real wage rate W/P and the real rental
rate of capital R/P will be
W/P=3/4 and R/P = 4/9
W/P = 4/9 and R/P = 3/4
W/P = 2/27 and R/P = 3/2
W/P = 3/2 and R/P = 2/27](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5c9ca02-ae36-4d6a-8217-95df42887e0f%2F3fa219cd-4343-4759-8520-5b7b9a2f4d87%2Fy8mq9y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the production function: Y = K¹/32/3
Suppose the supply of capital is 8 and the supply of labor is 27. In equilibrium, the real wage rate W/P and the real rental
rate of capital R/P will be
W/P=3/4 and R/P = 4/9
W/P = 4/9 and R/P = 3/4
W/P = 2/27 and R/P = 3/2
W/P = 3/2 and R/P = 2/27
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