Consider the production function: Y = K²/3L2/3 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 O O O O

Consider the production function: Y = K²/3L2/3 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 O O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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