In production functions similar to Cobb-Douglas as follows, how can you infer technological progress by comparing values of A, a and B? Q = ALOK³
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Q: Economies production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A= 1, then Y = ?
A: Production function; Y = AK0.3N0.7K = 2000N = 100A = 1
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Q: The Cobb-Douglas production function is a classic model from economics used to model output as a…
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- What is the difference between economies of scale andeconomies of scope? How do firms consider these wheninvesting in processes?Ahmed the Nigerian guy can produce any of the following combinations of clay pots (P) and jute bags (J): (a) 100 P and 0 J; (b) 50 P and 25 J; (c) 0 P and 50 J. Adib the Bangladeshi guy on the other hand can produce the following combinations of clay pots and jute bags: (a) 50 P and 0 J; (b) 25 P and 40 J; (c) 0 P and 80 J. Who has the comparative advantage in the production of clay pots? Of jute? Explain and show the calculations clearly.Someday, if you want to be an economist or to study more about economic analysis, what platform you will implement to sustain the development of cost estimating fundamentals?
- Number*0.65 0.35 where x is the amount of labor and y is the amount of capital. The productivity of a country is given by f(x,y) = 100x (a) Compute the marginal productivities of labor and capital when x = 300 and y = 500. (b) Use part (a) to determine the approximate effect on productivity of increasing capital from 500 to 502 units, while keeping labor fixed at 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 298.5 units while keeping capital fixed at 500 units? (a) The marginal productivity of labor is (Do not round until the final answer. Then round to two decimal places as needed.) The marginal productivity of capital is (Do not round until the final answer. Then round to two decimal places as needed.) (b) When capital is increased from 500 to 502 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.) (c) When labor is decreased from 300 to 298.5 units, the approximate change…Isocost and Production functions What is the optimal mix of x₁ and x₂? C = 5x₁ + 10x₂ Q = 10x₁³x₂+
- I can't do this question. Please help. thank you!This is not a graded question. Kindly help me solve. This is a question from my lecture notes. I want to understand the steps involed in arriving at the anwer shown. Kindly explain all steps showing details of how the answer was arrived at. Please don't use langrangian law. Thanks a lot.(1) Suppose the production function for widgets is given by q = kl – 0.8k? –0.272 where q is the annual quantity of widgets produced, k is the annual capital input and 1 is the annual labor input. (a) Suppose k-10; Find the average productivity of labor. At what level of labor input does the average productivity reach a maximum? (b) Suppose k-10; Find the marginal productivity of labor. At what level of labor input does the marginal productivity reach a maximum? Is the average product equal to the marginal product at the point where average product reaches its maximum? Please showL it.
- In a production of armored shots to Ukraine the production function looks as follows: Q = KaL b where b=0,5 and a+b=1 If we assume that the production is 40 armored shots and the price of capital(K) is PK=2 and the price of labour is PL=18 what is the optimal level of K and L producing 40 armored shots? Don’t forget to show all the steps in your calculations, motivating and finally don’t forget to answer the question itself!100VKL, where q is 4. The production function for puffed rice is given by q = the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour. (a) Calculate the q = 1,000 isoquant for this production function and show it on a graph. (b) If K = 10, how many workers are required to produce q =1,000? What is the average productivity of puffed-rice workers? (c) Suppose technical progress shifts the production function to q = 200 VKL. Answer parts (a) and (b) for this new situation.Economics Question