QUESTION 2Suppose that an economy's production function is y-A/0.5g0.3y0.7, where Y is output, A is total factor productivity, Lis land, K is capital and N is labor. However, we make amistake and assume that it is given by y-AK03N0.7. In other words, we do not take into account that land L matters. If K and N do not change, but L grows by 19.9%, whatwould we estimate the growth rate of A to be (approximately, in percent terms)? (Submit your answer with up to two decimals, i.e., 10.22 for 10.22% and 11.44 for 11.442%.)

Answered: Image /qna-images/answer/e2e9f5a2-1ed1-45e9-bda6-322689c06cc0.jpg

QUESTION 2 Suppose that an economy's production function is y-ALO.5g0.3y0.7, where Y is output, A is total factor productivity, L is land, K is capital and N is labor. However, we make a mistake and assume that it is given by y-AKO3N0.7. In other words, we do not take into account that landL matters. If K and N do not change, but L grows by 19.9%, what would we estimate the growth rate of A to be (approximately, in percent terms)? (Submit your answer with up to two decimals, i.e., 10.22 for 10.22% and 11.44 for 11442%.)

QUESTION 2 Suppose that an economy's production function is y-ALO.5g0.3y0.7, where Y is output, A is total factor productivity, L is land, K is capital and N is labor. However, we make a mistake and assume that it is given by y-AKO3N0.7. In other words, we do not take into account that landL matters. If K and N do not change, but L grows by 19.9%, what would we estimate the growth rate of A to be (approximately, in percent terms)? (Submit your answer with up to two decimals, i.e., 10.22 for 10.22% and 11.44 for 11442%.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

I need help with parts (f) and (g) of question 2
Suppose the per-worker production function is: y = A(1-gA) Where ga is the fraction of all workers that produce technologies. Further, suppose the growth of technology is given by the following equation growth of A = (g//m)(L) Suppose L = 1 and m = 7, and that initially ga = 0.7. If ga fell to 0.8 the level of output per %3D worker would: fall Impossible to say rise stay the same
I need answer typing clear urjent i will give 5 upvotes no chatgpt
Consider the production function Y=K1/2 N1/2 a. Compute output when K=37 and N=80 b. If both capital and labour double, what happens to output? c. Is this production function characterized by constant returns to scale? Explain. d. Are there decreasing returns to capital? Explain. e. Are there decreasing returns to labour? Explain. f. Write this production function as a relationship between output per worker and capital per worker. Show all your work. g. Let capital per worker be 6. What is output per worker? Now, double capital per worker to 12. Does output per worker more or less than double? h. Does the relation between output per worker and capital per worker exhibit constant returns to scale? Explain/show your work
How does the slope of the production function illustrate diminishing returns? The slope of the production function becomes steep as the quantity of increases because of diminishing returns. O A. more; capital OB. more; labor O C. less; labor O D. less; capital Click to select your answer.
How does the slope of the production function illustrate diminishing returns? The slope of the production function becomes steep as the quantity of increases because of diminishing returns. A. more; capital B. more; labor O C. less; labor D. less; capital Click to select your answer. MacBook Air 吕0 000 000 FS F4 F3 esc F2 F1 % #
The Solow model is an important formal model of economic growth. Assume that the production function is Y = F(K,N) = zK° N¹-a, where 0 < a < 1. Production is constant returns to scale. We use lowercase to denote variables in per capita terms.
QUESTION 25 Which of the following production functions exhibits constant returns to scale? OA Y=KL O B. Y=KªL1-a ocY=K!/3_ 1/3 O D. Y=K1/4_ 1/2 O E. V=K2/3
Can you please help me?
Suppose that production function of certain devices is determined by: q = k * L - 0.8 k2 - 0.2 L2 Where q represents annual quantity of devices produced, k represents annual quantity of capital factor, and L represents annual quantity of labor factor. (a) Suppose k = 10; draw a graph with average and total labor productivity. What is level of labor (L) factor at which average productivity reaches a maximum? How many devices are produced at that point? (b) Assuming again that k = 10, plot Marginal Product (MP) curve. At what level do we have that labor (L) factor is MP = 0? (c) Suppose capital (k) factor were to increase to k = 20. How would your previous answers change?
Draw an example production function in terms of output and capital.GIVE 2 specific properties which define its shape; explain these usingthe definition and properties of MPK.