Labor and marginal product of capital for capitalberg

Assignment Help Business Management
Reference no: EM131376044

Production in the country of CapitalBerg can be characterized by the following function: Y = 2K0.2L0.8 and that CapitalBerg initially has 200 units of labor and 1000 units of capital.

a) Calculate the marginal product of labor and marginal product of capital for CapitalBerg.

b) Show with calculus that the production function exhibits diminishing returns to capital.

c) Calculate the total payments to labor and capital in CapitalBerg.

d) Suppose that in CapitalBerg there is a large increase in investment that adds a lot more capital to the economy. What happens to the rental rate of capital and real wage rate in CapitalBerg? Briefly explain.

e) Again suppose that in CapitalBerg there is a large increase in investment that adds a lot more capital to the economy. What happens to the income shares of capital and labor in this economy? No math is necessary but it may help to see the answer if you pretend that capital increased from 1000 to 1500 while the amount of labor stayed the same.

f) In the production function for CapitalBerg briefly explain what the "2" represents.

Reference no: EM131376044

Questions Cloud

How does a cad cell sense the flames : What voltage does the ignition transformer provide to the electrodes?
Customer demand during the two weeks before thanksgiving : Zeller’s was a small family-owned grocery store in Cleveland Heights, Ohio. On most days of the year, customer traffic was moderate and predictable with cyclic ebbs and flows throughout the days of the week and the hours of the day. More customers sh..
What would be additional funds needed for the coming year : Under these assumptions, what would be the additional funds needed for the coming year? Why is this AFN different from the one you found in given Problem?
Internal revenue service : The Federal Unemployment Tax Act(or FUTA, I.R.C. ch. 23) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenu..
Labor and marginal product of capital for capitalberg : Production in the country of CapitalBerg can be characterized by the following function: Y = 2K0.2L0.8 and that CapitalBerg initially has 200 units of labor and 1000 units of capital. a) Calculate the marginal product of labor and marginal product ..
How large a sales increase can the company achieve : Pierce's profit margin is 5 percent, and its payout ratio is 60 percent. How large a sales increase can the company achieve without having to raise funds externally?
Construct uptons pro forma balance sheet for december 31 : Construct Upton's pro forma balance sheet for December 31, 2007. Assume that all external capital requirements are met by bank loans and are reflected in notes payable. Assume Upton's profit margin and dividend payout ratio remain constant.
Discuss about the administrative discretion : Do you think that public administrators should be restricted to only laid down rules in the discharge of their duties as espoused by Max Weber or should they have some amount of discretion. Provide the likely benefits and disadvantages of each sce..
Negative effects of the imposed price ceiling : What are some alternative possibilities to alleviating the negative effects of the imposed price ceiling?

Reviews

Write a Review

Business Management Questions & Answers

  Executive office of the president

Can anyone help me with this discussion? It needs to be at least 250 words, not plagiarized. How has the Executive Office of the President expanded? What role did the Brownlow Committee play in this expansion? Please explain what the Brownlow Com..

  Prepare a report on organic food industry

Prepare a 3000 words report on Organic food industry. Clear and concise target market, segments and positioning (includes positing mapping) followed by the company. Comments on both Micro environmental and Macro environmental forces affecting the com..

  Potential real property issues

What are potential real property issues that could arise from a family farm with a business on it. To give an example if Bill and Mary had a farm and on that farm was a store. They also have a son, John, living on the farm with his wife Petie and ..

  Write an advertisement for that position that complies with

not all discrimination is prohibited by law. for example employers routinely discriminate between potential employees

  Develop employees in the decision making process

Imagine your manager has requested that everyone in the company take the StrengthsFinder test. Now, your manager has asked you to put together a training tool on how to best coach and develop employees in the decision making process who have varie..

  Describe the value chain model

Describe the Value Chain Model and its importance to performance management. Describe the key operations of a commercial airline delivery service. How does the Value Chain Model assist the operations manager to maximize profit and meet customer ex..

  Hazardous conditions surrounding an incident

"A report must do more than just identify at-risk acts or hazardous conditions surrounding an incident."

  Short-run trade-off between inflation and unemployment

Evaluate why policymakers face a short-run trade-off between inflation and unemployment.

  Explain a breakdown of the energy resources your city

Explain why you chose these resources. Include a chart detailing your budget breakdown used to determine your energy proposal. Explain a breakdown of the energy resources your city will use.

  Required assignment two-analyzing risk

In this assignment, you will write an executive summary analyzing the exchange risks, country risks, and political risks the company executive team needs to be aware of in building a manufacturing facility in Brazil.

  Foreign direct investment

Select one country where your company has invested in (in any foreign direct investment forms). Then, you need to analyse the internationalisation of the company. In doing this you can follow the following points:Overview of the company as an MNC (Sh..

  Explain what are the key ethical principles

Explain What are the key ethical principles associated with the case and How was a decision made by the healthcare administration individuals involved in this case

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