In an economy with production function Y = 1.5 ×KOL07,K= 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately), ,and the real wage is (approximately) Oa 0.6;0.9 Ob. 0.5: 0.8 Oc 1.4:0.4 O d. 0.9; 1.35 O e. 7;8

In an economy with production function Y = 1.5 ×KOL07,K= 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately), ,and the real wage is (approximately) Oa 0.6;0.9 Ob. 0.5: 0.8 Oc 1.4:0.4 O d. 0.9; 1.35 O e. 7;8

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

In an economy with production function Y = 1.5 x KOLO7, K=343, and L= 512. If factor markets are in equilibrium,
then the rental price of capital is (approximately).
and the real wage is (approximately).
Oa. 0.6;0.9
Ob. 0.5:0.8
Oc 1.4:0.4
O d. 0.9; 1.35
O e. 7:8

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