i. Which farm is more productive according to the productivity measures ii. of agricultural productivity? Why? Which of the three measures is the most informative measure
i. Which farm is more productive according to the productivity measures ii. of agricultural productivity? Why? Which of the three measures is the most informative measure
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
4a
![Question 4
a) Consider two farms, A and B. The input use and output are given in the following table. The
wage = $80 per day and rental price of the machines = $100 per day
Farm Labour(L) | Physical
Output(Q) Q/L
Q/K
TFP
capital(K)
A
2
2
200
?
?
?
B
4
1
200
?
?
?
Which farm is more productive according to the productivity measures
i.
ii.
Which of the three measures is the most informative measure
of agricultural productivity? Why?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8dd238f6-45b9-4294-80ec-a43f61ee7a14%2Fd8706eab-d62d-480d-aa16-ca04a22595a9%2F4g5tca_processed.png&w=3840&q=75)
Transcribed Image Text:Question 4
a) Consider two farms, A and B. The input use and output are given in the following table. The
wage = $80 per day and rental price of the machines = $100 per day
Farm Labour(L) | Physical
Output(Q) Q/L
Q/K
TFP
capital(K)
A
2
2
200
?
?
?
B
4
1
200
?
?
?
Which farm is more productive according to the productivity measures
i.
ii.
Which of the three measures is the most informative measure
of agricultural productivity? Why?
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