Suppose that the production function is Y = 9 K0.5N0.5With this production function, the marginal product of labor is MPN = 4.5 KO.5/NO.5.The labor supply curve is NS = 105 x [(1 - t)xwP, where w is the real wage rate, t is the tax rate on labor income, and hence (1 - t)xw is the after-tax real wage rate.The capital stock is K= 25.Assume that the tax rate on labor income, t, equals zero.The equilibrium level of the real wage is (Round your answer to two decimal places).The equilibrium level of employment is(Round your answer to one decimal place).

Fuppose that the production function is Y = 9 KUNUD. Vith this production function, the marginal product of labor is MPN = 4.5 KO5/NO5 he labor supply curve is NS = 105 x [(1 - t)xwf, where w is the real wage rate, tis the tax rate on labor income, and hence (1 - f)xw is the after he capital stock is K = 25. ssume that the tax rate on labor income, t, equals zero. he equilibrium level of the real wage is (Round your answer to two decimal places). he equilibrium level of employment is (Round your answer to one decimal place).

Fuppose that the production function is Y = 9 KUNUD. Vith this production function, the marginal product of labor is MPN = 4.5 KO5/NO5 he labor supply curve is NS = 105 x [(1 - t)xwf, where w is the real wage rate, tis the tax rate on labor income, and hence (1 - f)xw is the after he capital stock is K = 25. ssume that the tax rate on labor income, t, equals zero. he equilibrium level of the real wage is (Round your answer to two decimal places). he equilibrium level of employment is (Round your answer to one decimal place).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Y=10.KO.5 L0.5 K starts at 500, L at 50, Investment 0.10Y, Depreciation 0.05K An alien invasion leads to a reduction in labour to 25 but no capital is damaged. What happens to the marginal product of labour? Increase O stays the same Decrease
4) If the marginal product of capital MPK > r, where r is the market rental rate for capital, the firm A. Should hire more capital until MPK = r. B. Should hire more labor until MPK = r. C. Should hire more labor until MPK = 0. D. Should fire more capital until MPK = r. %3D 5) Figure 1 below shows the dynamics of per-capita GDP for six countries in ratio scale from 1870 to 2010. From the Figure we learn that the level of per capita GDP A. Has almost doubled for the US from 1880 to 2020 B. Was higher in the U.S. compared to the UK in 1880 C. Was higher in China compared to Argentina in 2000. D. Increased by approximately 5 times in Japan from 1950 to 1970. Answer 64,000 U.S. 32,000 16,000 Argentina 8,000 U.K. 4,000 Japan 2,000 S. Africa China 1,000 1880 1900 1920 1940 1960 1980 2000 2020
Suppose that the production function is Y=9 With this production function, the marginal product of labor is MPN 4.5 KNO The labor supply curve is NS 105x[(1 - fxwf, where w is the real wage rate, t is the tax rate on labor income, and hence (1-f)xw is the after-tax real wage rate. The capital stock is K = 25. Assume that the tax rate on labor income, t equals zero The equilibrium level of the real wage is The equilibrium level of employment is (Round your answer to tivo decimal places). (Round your answer to one decimal place).
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