Question
In: Economics
The production function is f(K,N) = N/2 + √ K, where N is the amount of...
The production function is f(K,N) = N/2 + √ K, where N is the amount of labor used and K the amount of capital used. (a) What is returns to scale of this production function? What is the marginal product of labor? (b) In the short run, K¯ = 4. Labor is variable. On the graph, draw output as a function of labor input in the short run in blue. Draw the marginal product of labor as a function of labor input in the short run in red.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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Suppose that output Q is produced with the production function Q = f(K,L), where K is...
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= f(K,L), where K is the number of machines used, and L the number
of workers used. Assuming that the price of output p and the wage w
and rental rate of capital r are all constant, what would the profit
maximizing rules be for the hiring of L and K?
(b) What is the MRTSK,L for the following production function: Q =
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Suppose a production function is given by F ( K , L ) = K^(1/2) L^(1/2), the...
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c. (5) When...
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F(K,N) = zK^(1/3)N^(2/3)
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F(K,N) = zK^(1/3)N^(2/3)
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K = 300 in period 0 and the
unit period is one year. In contrast to the standard Solow
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growth rate n is no longer exogenous but rather endogenous and
determined by
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questions.
How much output does the economy produce?
What are the wage and the rental price of land?
What share of output does labor receive?
If...
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