Illustrate what will be the marginal product of capital

Assignment Help Business Economics

Reference no: EM1343975

Q. a. Illustrate what is the marginal product of capital in this situation? (Hint: The marginal product of capital may be Compute d using calculus by differentiating the production function also using the capital-o/p ratio or by using the fact which capital's share equals MPK multiplied by K divided by Y.)

b. If the economy is in a steady state, illustrate what must be the saving rate? (Hint: The saving rate multiplied by Y must provide for gross growth of (^TM + n + g)K, where ^TM is the depreciation rate.)

c. If the economy decides to achieve the Golden Rule level of capital also actually reaches it, illustrate what will be the marginal product of capital?

d. Illustrate what must

Reference no: EM1343975

Questions Cloud

Calculate coupon rate on the bonds : Backwater Corporation has 6% coupon bonds making annual payments with a YTM of 5.5%. The current yield on these bonds is 5.85%.

Evaluate how much will the father have to save : Evaluate how much will the father have to save each year before the time his daughter starts college in order to put her through school?

Explaining social network widgets and resaurant locators : The popularity of Apple's iPhone and Application store has made _____ improtant to advertisers, who see social network widgets, resaurant locators.

Calculate stock price for companies : Red, Inc., Yellow Corporation, and Blue firm each will pay a dividend of $2.85 next year. The growth rate in dividends for all three firms is 5%.

Illustrate what will be the marginal product of capital : If the economy decides to achieve the Golden Rule level of capital also actually reaches it, illustrate what will be the marginal product of capital.

Explain how much money must be saved each year : Explain how much money must be saved each year to accomplish the same retirement income of $80,000 per year?

Key factors limiting use of personalization : Two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are?

What are alternatives that could help reconcile resources : How much will the short fall amount to at the beginning of the retirement period and what lump sum will she need at the beginning of the retirement period

Acquisition project research of volkswagen : Conduct the research for an acquisition with Fiat and Ford separately. Research how each company will individually benefit from the acquisition. Discuss corporate governance issues involved in a acquisition deals.

User Account

All Pages