Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 8.3, Problem 3ST
To determine
Describe the workers’ misperceptions for SRAS curve with an explanation.
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Describe the neoclassical model of labor -leisure choice model by emphasizing the objective function, constraint and optimality conditions?
17. If a firm's MPL = 2.0 when that firm hires 25
units of labor to produce 100 units, then which
of the following statements would be true:
a.
as the firm hires additional labor, the
MPL will approach its maximum
point
as the firm hires additional labor, the
MPL will increase
as the firm hires additional labor, the
APL will increase
as the firm hires additional labor, the
APL will decrease
b.
C.
d.
Question1 Imagine you work for a firm that only utilizes labor and capital as inputs and has a CES
production function:
q = f(L, K) = [aLº + BK²]
=
Where a = 3 = 0.5.y
1.p = 0.5.
a. What is the MPL ? What does this mean economically?
b. What is the MPK? What does this mean economically?
c. What is the MRTS? What does this mean economically?
d. Does this CES function have constant, increasing, or decreasing returns to scale?
Chapter 8 Solutions
Macroeconomics
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - Prob. 3STCh. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QP
Ch. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 20QPCh. 8 - Prob. 21QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNG
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