1. Suppose that the production function for Sevillia can be represented as Y=F (K, L) =5...

1. Suppose that the production function for Sevillia can be represented as Y=F (K, L) =5 K2/3L1/3 Assume the rate of growth of population is 20%, the saving rate is s = 0.2 and that depreciation rate is 10%. Determine the production function per worker. ( 2 marks) Calculate the steady-state capital stock per worker, output per work er, and consumption per worker. ( calculate to 2 decimal places) ( 3 marks) Illustrate the impact of implementing the policy of one child per household to reduce population growth on the steady state capital stock per worker (k*) with the use of a well labeled diagram. ( 3 marks) Suppose the Statistical Institute of Wakandan (STATINWa) interviews 200,000 people in its monthly survey; 95,000 are not in the labour force, 85,000 are employed, 5,000 are unemployed, and 15,000 are retired. What is the unemployment rate that STATINWa announces?

Expert Solution

THATS IT....

Rahul Sunny answered 2 years ago

Suppose the production function in Netherlands can be represented by Y = [(K^(1/4) L^(1/3)]^2 , and...

Suppose the production function in Netherlands can be represented by Y = [(K^(1/4) L^(1/3)]^2 , and the production function in Neverland is Y = [(K^4 L^3 )^(1/9)] . Which country will experience a higher percentage decline in national output if both capital K and labor L decrease by 25% at the same time? (a) Neverland. (b) Netherlands. (c) They are the same. (d) More information is required.

Suppose your production function for baseball bats is f(K, L) = L^1/5 K^1/5 and you are...

Suppose your production function for baseball bats is f(K, L) = L^1/5 K^1/5 and you are a profit maximizing price taker. Use minimizing costs to: (a) Determine the conditional factor demands for labor and capital (L = g(w, r, y) =? and K = h(w, r, y) =?). Use these to derive the cost function. (b) Derive the marginal and average cost functions. (c) Derive the supply function for baseball bats. (d) Given this supply function, use the conditional factor...

Suppose a production function is given by F ( K , L ) = K 1 2...

Suppose a production function is given by F ( K , L ) = K 1 2 L 1 2, the price of capital “r” is $16, and the price of labor “w” is $16. a. (5) What combination of labor and capital minimizes the cost of producing 100 units of output in the long run? b. (5) When r falls to $1, what is the minimum cost of producing 100 pounds of pretzels in the short run? In the long...

2. Suppose a production function is given by F ( K , L ) = K 1...

2. Suppose a production function is given by F ( K , L ) = K 1 2 L 1 2, the price of capital “r” is $16, and the price of labor “w” is $16. a. (5) What combination of labor and capital minimizes the cost of producing 100 units of output in the long run? b. (5) When r falls to $1, what is the minimum cost of producing 100 pounds of pretzels in the short run? In the...

Suppose a production function is given by F ( K , L ) = K^(1/2) L^(1/2), the...

Suppose a production function is given by F ( K , L ) = K^(1/2) L^(1/2), the price of capital “r” is $16, and the price of labor “w” is $16. a. (5) What combination of labor and capital minimizes the cost of producing 100 units of output in the long run? b. (5) When r falls to $1, what is the minimum cost of producing 100 pounds of pretzels in the short run? In the long run? c. (5) When...

1. • Country A and country B both have the production function Y 5 F(K, L)...

1. • Country A and country B both have the production function Y 5 F(K, L) 5 K1/3L2/3. a. Does this production function have constant returns to scale? Explain. b. What is the per-worker production function, y 5 f (k)? c. Assume that neither country experiences population growth or technological progress and that 20 percent of capital depreciates each year. Assume further that country A saves 10 percent of output each year and country B saves 30 percent of output...

3. • Consider an economy described by the production function: Y 5 F(K, L) 5 K0.4L0.6....

3. • Consider an economy described by the production function: Y 5 F(K, L) 5 K0.4L0.6. a. What is the per-worker production function? b. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate. c. Assume that the depreciation rate is 15 percent per year. Make a table showing steadystate capital per worker, output per worker, and consumption...

Consider a firm whose technology can be represented by the following Cobb-Douglas production function: , f(L,K)...

Consider a firm whose technology can be represented by the following Cobb-Douglas production function: , f(L,K) = L0.5K0.5, where L and K represent labor and capital, respectively. In a new diagram, in please draw an isoquant that represent an output level of 20 units. Suppose the price of labor, w, is 1 and the price of capital, r, is 2, and the firm’s budget, C, is 100. Please draw the firm’s isocost line in the same diagram. Can the firm...

Problem 2 Consider an economy described by the production function: Y = F(K,L) = K 1/2...

Problem 2 Consider an economy described by the production function: Y = F(K,L) = K 1/2 L 1/2 a. What is the per- worker production function? b. Assuming no population growth or technological progress, find the steady- state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate. c. Assume that the depreciation rate is 10 percent per year. Make a table showing steady-state capital per worker, output...

A firm production is represented by the following Cobb-Douglas function: Q = K^1/5 L^4/5. The rental...

A firm production is represented by the following Cobb-Douglas function: Q = K^1/5 L^4/5. The rental rate, r, of capital is given by $240 and the wage rate is $30. a. For a given level of output, what should be the ratio of capital to labor in order to minimize costs? b. How much capital and labor should be used to produce 400 units? How much is the total cost? c. What is the short run total cost if output...

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