Using the model for a closed economy, if the nominal wage is $40 and we have a Cobb-Douglas production function where a = 0.2, L = 400, and labor income + capital income = $2,000, what is the price of the output given the neoclassical theory of distribution holds? %3!
Using the model for a closed economy, if the nominal wage is $40 and we have a Cobb-Douglas production function where a = 0.2, L = 400, and labor income + capital income = $2,000, what is the price of the output given the neoclassical theory of distribution holds? %3!
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![Using the model for a closed economy, if the nominal wage is $40 and we
b)
have a Cobb-Douglas production function where a = 0.2, L = 400, and labor income
+ capital income = $2,000, what is the price of the output given the neoclassical
theory of distribution holds?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4ef9123-5f59-430a-9fde-8ced410b276f%2Fe9da0aaf-ecd0-41bc-b055-d91f88079091%2Fbgf7wm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Using the model for a closed economy, if the nominal wage is $40 and we
b)
have a Cobb-Douglas production function where a = 0.2, L = 400, and labor income
+ capital income = $2,000, what is the price of the output given the neoclassical
theory of distribution holds?
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