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Suppose we have the following production function with human capital normalized to 1 (i.e. human capital = 1), total factor productivity represented with A=10, physical capital represented with K=537, and labor represented with L=754 to create GDP represented with Y.  What would the size of this economy be for the common production function of Y=A*K0.5*L0.5?  This reads as "A times K to the 0.5 power times L to the 0.5 power."  However, this is also the same as "A times the square root of K times the square root of L."  Round your answer to two digits after the decimal.

Suppose we have the following production function with human capital normalized to 1 (i.e. human capital = 1), total factor productivity represented with A=10, physical capital represented with K=537, and labor represented with L=754 to create GDP represented with Y.  What would the size of this economy be for the common production function of Y=A*K0.5*L0.5?  This reads as "A times K to the 0.5 power times L to the 0.5 power."  However, this is also the same as "A times the square root of K times the square root of L."  Round your answer to two digits after the decimal.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose we have the following production function with human capital normalized to 1 (i.e. human capital = 1), total factor productivity represented with A=10, physical capital represented with K=537, and labor represented with L=754 to create GDP represented with Y.  What would the size of this economy be for the common production function of Y=A*K0.5*L0.5?  This reads as "A times K to the 0.5 power times L to the 0.5 power."  However, this is also the same as "A times the square root of K times the square root of L."  Round your answer to two digits after the decimal. 

 

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