EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9780100605930
Author: Blinder
Publisher: YUZU
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Chapter 5, Problem 2TY
To determine
Explain greater
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3. A country has the following production function: Y = K0.2L0.6p0.2 where Y is total
output, K is capital stock, L is population size and P is land size. The depreciation rate (8)
is 0.05. The population growth rate (n) is 0. We define: y = ½, k = 1 and p = . Land size
is fixed.
L
a) Find out the steady state values of k and y in terms of p, the per capita land size.
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Consider the market for sweaters in a Hamilton
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consumer surplus generated by consuming the 29th
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OB. $58.20.
○ C. $77.60.
OD. $38.80.
○ E. $19.50.
Price ($)
97
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29.0
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Quantity (Sweaters per week)
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EBK ECONOMICS: PRINCIPLES AND POLICY
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