For a particular economy, the following capital input K and labor input N were reported in four different years: Year K N k 1 500 800 0.625 2 625 800 0.785 3 625 1,000 0.625 4 750 960 0.78125 The production function in this economy is: K0.40 0.60 01060 where Y is 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: (Enter your responses to three decimal places.)

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter9: Production Functions
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For a particular economy, the following capital input K and labor input N were reported in four different years:
Year
K
N
k
1
500
800
0.625
2
625
800
0.785
3
625
1,000
0.625
4
750
960
0.78125
The production function in this
economy
is:
K0.40 0.60
01060
where Y is 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:
(Enter your responses to three decimal places.)
Transcribed Image Text:For a particular economy, the following capital input K and labor input N were reported in four different years: Year K N k 1 500 800 0.625 2 625 800 0.785 3 625 1,000 0.625 4 750 960 0.78125 The production function in this economy is: K0.40 0.60 01060 where Y is 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: (Enter your responses to three decimal places.)
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