Matched Problem 4 The productivity of an airplane–manufacturing company is given approximately by the Cobb–Douglas production function f ( x , y ) = 40 x 0.3 y 0.7 (A) Find f x ( x, y ) and f y ( x, y ). (B) If the company is currently using 1.500 units of labor and 4,500 units of capital, find the marginal productivity of labor and the marginal productivity of capital. (C) For the greatest increase in productivity, should the management of the company encourage increased use of labor or increased use of capital?
Matched Problem 4 The productivity of an airplane–manufacturing company is given approximately by the Cobb–Douglas production function f ( x , y ) = 40 x 0.3 y 0.7 (A) Find f x ( x, y ) and f y ( x, y ). (B) If the company is currently using 1.500 units of labor and 4,500 units of capital, find the marginal productivity of labor and the marginal productivity of capital. (C) For the greatest increase in productivity, should the management of the company encourage increased use of labor or increased use of capital?
Solution Summary: The author calculates the partial derivative of the function f(x,y)=12x-0.7y
Matched Problem 4The productivity of an airplane–manufacturing company is given approximately by the Cobb–Douglas production function
f
(
x
,
y
)
=
40
x
0.3
y
0.7
(A) Find fx(x, y) and fy(x, y).
(B) If the company is currently using 1.500 units of labor and 4,500 units of capital, find the marginal productivity of labor and the marginal productivity of capital.
(C) For the greatest increase in productivity, should the management of the company encourage increased use of labor or increased use of capital?
Let {Yt} be an AR(2) process of the special form Yt = φ2Yt − 2 + et. Use first principles
to find the range of values of φ2 for which the process is stationary.
Describe the important characteristics of the autocorrelation function for the following
models: (a) MA(1), (b) MA(2), (c) AR(1), (d) AR(2), and (e) ARMA(1,1).
a) prove that if (x) is increasing then (x~)
is bounded below
and
prove if (is decrasing then (xn) is
bounded above-
6) If Xn is bounded and monotone then (Xa) is
Convergent. In particular.
i) if (xn) is bounded above and incrasing then
lim xn = sups xn: ne№3
n700
ii) if (X) is bounded below and decrasing then
I'm Xn = inf\x₂,neN}
4500
143
Chapter 7 Solutions
MyLab Math with Pearson eText - Stand Alone Access Card - for Calculus for Business, Economics, Life Sciences & Social Sciences, Brief Version (14th Edition)
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