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For a particular economy, the following capital input K and labor input N were reported in four different years: senb Year K N 1 200 1,000 2 250 1,000 3 250 1,250 300 1,200 The production function in this economy is: KO.40 N0.60 where Yis total output. a. In the above table, calculate the capital-labor ratio, k, in each year. (round to two decimal places) Calculate output per worker in year 1: 0 (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.) Calculate output per worker in year 2: (Enter your responses to three decimal places.) Calculate output per worker in year 4: (Enter your responses to three decimal places.) You should notice that for years in which the capital-labor ratio is the same, so is output per worker. b. Repeat Part (a) but assume now that the production function is: K0.40 No.70 Calculate output per worker in year 1: (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.)

For a particular economy, the following capital input K and labor input N were reported in four different years: senb Year K N 1 200 1,000 2 250 1,000 3 250 1,250 300 1,200 The production function in this economy is: KO.40 N0.60 where Yis total output. a. In the above table, calculate the capital-labor ratio, k, in each year. (round to two decimal places) Calculate output per worker in year 1: 0 (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.) Calculate output per worker in year 2: (Enter your responses to three decimal places.) Calculate output per worker in year 4: (Enter your responses to three decimal places.) You should notice that for years in which the capital-labor ratio is the same, so is output per worker. b. Repeat Part (a) but assume now that the production function is: K0.40 No.70 Calculate output per worker in year 1: (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Next question For a particular economy, the following capital input K and labor input N were reported in four different years: Year K N k 1 200 1,000 250 1,000 3 250 1,250 4. 300 1,200 The production function in this economy is: K0.40 N0.60 where Yis total output. a. In the above table, calculate the capital-labor ratio, k, in each year. (round to two decimal places) Calculate output per worker in year 1: 0 (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.) Calculate output per worker in year 2: (Enter your responses to three decimal places.) Calculate output per worker in year 4: (Enter your responses to three decimal places.) You should notice that for years in which the capital-labor ratio is the same, so is output per worker. b. Repeat Part (a) but assume now that the production function is: K0.40 N0.70 Calculate output per worker in year 1: (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.)
Transcribed Image Text:Next question For a particular economy, the following capital input K and labor input N were reported in four different years: Year K N k 1 200 1,000 250 1,000 3 250 1,250 4. 300 1,200 The production function in this economy is: K0.40 N0.60 where Yis total output. a. In the above table, calculate the capital-labor ratio, k, in each year. (round to two decimal places) Calculate output per worker in year 1: 0 (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.) Calculate output per worker in year 2: (Enter your responses to three decimal places.) Calculate output per worker in year 4: (Enter your responses to three decimal places.) You should notice that for years in which the capital-labor ratio is the same, so is output per worker. b. Repeat Part (a) but assume now that the production function is: K0.40 N0.70 Calculate output per worker in year 1: (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.)
You should notice that for years in which the capital-labor ratio is the same, so is output per worker. b. Repeat Part (a) but assume now that the production function is: KO.40 No.70 Calculate output per worker in year 1: (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.) Calculate output per worker in year 2: (Enter your responses to three decimal places.) Calculate output per worker in year 4: (Enter your responses to three decimal places.) You should notice that for years in which the capital-labor ratio is the same, output per worker is no longer the same. That's becasue the sum of the exponents in the production function exceeds one, so the production function can not be written in per-worker form.
Transcribed Image Text:You should notice that for years in which the capital-labor ratio is the same, so is output per worker. b. Repeat Part (a) but assume now that the production function is: KO.40 No.70 Calculate output per worker in year 1: (Enter your responses to three decimal places.) Calculate output per worker in year 3: (Enter your responses to three decimal places.) Calculate output per worker in year 2: (Enter your responses to three decimal places.) Calculate output per worker in year 4: (Enter your responses to three decimal places.) You should notice that for years in which the capital-labor ratio is the same, output per worker is no longer the same. That's becasue the sum of the exponents in the production function exceeds one, so the production function can not be written in per-worker form.
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