Find how much does output increase

Assignment Help Finance Basics
Reference no: EM131143743

Consider the Solow growth model and the following production function: Y= K^0.3(AL)^0.7

A) If A= 2, L= 20,000 and K=400 what is Output?

B) Suppose the Labor force grows by 5% so that it is now 21,000. By how much does output increase?

C) Starting again with the conditions in part a, what is capital increases by 5%so that it is now 420. By how much does output increase?

Reference no: EM131143743

Questions Cloud

Concerned about adverse public reaction : A town's department of public works is concerned about adverse public reaction to a sewer project that is currently in progress. Because of this, the Commissioner of Public Works has authorized a weekly survey to be conducted of town residents.
Job of managing labor relations with its union : Should Boeing simply do a better job of managing labor relations with its union? If you say yes, how should it go about doing a better job? If you say no, explain why you do not think that it will be effective.
Humans are naturally born criminals : Some criminologist believes all humans are naturally "Born Criminals" and it's the laws, morals, and/or norms that keep many of us from committing crimes. For example; would humans commit more crimes and hurt at will without morals, norms, and laws? ..
What data would be used to support this metric : Develop a listing of what you believe are the most important metrics for operations managers. (Hint: Be sure to consider the triple bottom line.) How does each metric support the overall financial performance of the organization? What data would be u..
Find how much does output increase : Consider the Solow growth model and the following production function: Y= K^0.3(AL)^0.7A) If A= 2, L= 20,000 and K=400 what is Output?B) Suppose the Labor force grows by 5% so that it is now 21,000. By how much does output increase?C) Starting again ..
Companies are engaged in the war on talent : It has become increasingly obvious that applicants are much more interested in what a company can offer above and beyond compensation and traditional health benefits. Companies are engaged in the War on Talent, most organizations have charged their r..
What is its gross profit and its gross profit rate : Reese Co. has sales revenue of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000.What is its gross profit and its gross profit rate?
Plot the data and provide insights about the time series : Forecasts and actual sales of MP3 players at Just Say Music are as follows: Month Forecast Actual Sales March 150 170 April 220 229 May 205 192 June 256 241 July 250 238 August 260 210 September 270 225 October 280 179. Plot the data and provide insi..
Prepare the closing entries for the sales account : Prepare the closing entries for the Sales account, assuming a balance of $200,000 and the Cost of Goods Sold account with a $145,000 balance.

Reviews

Write a Review

Finance Basics Questions & Answers

  Situation of an insurance company

Consider the situation of an insurance company which offers personal injury policies to professional hockey players. The typical payoffs to one of these policies are forecast to be the following:

  What is the present value of expected future stock price

Given that the first dividend [ayment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3 and then sum these PVs.

  What are corporate control events what are the restrictions

what are corporate control events? what are the restrictions faced by corporate insiders during corporate control

  Liquidating portfolio

Suppose a company with a trading book valued at $100 million. The return of these assets is distributed normally with a yearly standard deviation of 25 percent.

  What was swan depreciation and amortization expense

Swan's Bicycle Boats had a degree of accounting operating leverage equal to 1.50 during the most recent period. If the firm's EBITDA was $5,000 and its fixed costs were equal to $1,750, then what was Swan's depreciation and amortization expense du..

  Determine whether billy and mandy should undertake

Using the internal rate of return (IRR) method and their requirements, determine whether Billy and Mandy should undertake the investment.

  Present value analysis

Rita Gonzales won the $60 million lottery. She is to get $1 million a year for the next 50 years plus an additional lump sum payment of $10 million after 50 years. The discount rate is 10 percent. What is current value of her winnings?

  Should she subscribe to the agency

The initial charge for this service is $750, with an additional charge of $6 per individual report. Should she subscribe to the agency?

  Among the cash management techniques used by most

among the cash management techniques used by most businesses are those that slow down their bill payments. a good

  I we observe a rise in the ratio of pt dt relative to its

consider the constant-growth dividend discount model where pt dt 1gk-g where pt and dt are prices and dividends in

  How double taxation on a taxpayer may result

Show how double taxation on a taxpayer may result if all countries were to tax the worldwide income of their residents and the income earned within their territorial boundaries.

  Fyre inc has sales of 625000 costs of 260000 depreciation

fyre inc. has sales of 625000 costs of 260000 depreciation expense of 79000 interest expense of 43000 and a tax rate of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd