Measure of natural resources used in production

Assignment Help Business Economics

Reference no: EM131000837

Consider a production function of the form Y = AF (K, N, Z), where Z is a measure of natural resources used in production. Assume this production function has constant returns to scale and diminishing returns in each factor.

What will happen to output per head if capital and labor both grow but Z is fixed?

Reconsider (a), but add technical progress (growth in A).

In the 1970s there were fears that we were running out of natural resources and that this would limit growth. Discuss this view using your answers to (a) and (b).

Reference no: EM131000837

Questions Cloud

Does the confidence interval include the population mean : Assume that the price of housing in Corpus Christi is normally distributed. Based on our random sample of 23 houses we surveyed, we calculated that x = $299,756.2 with the standard deviation s = 107.11. If we know that the population mean, mu = 299,7..

Substitution between visiting gym and consuming all goods : Hulk goes to the gym 20 times a month. His income is $1000 per month and his visits to the gym cost $4 per visit. For simplicity, assume all other goods that Hulk consumes besides the gym costs $10 each. Assume Hulk exhibits diminishing marginal rate..

Present worth of saving to utility between old and contracts : El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in fu..

What is non-neutral technical change : What is neutral technical? What is non-neutral technical change? Suggest a specific example of nonneutral technical change that occurred in the US. In England until 1950, many homes were heated by burning coal in a fireplace; now most homes are heate..

Measure of natural resources used in production : Consider a production function of the form Y = AF (K, N, Z), where Z is a measure of natural resources used in production. Assume this production function has constant returns to scale and diminishing returns in each factor. What will happen to outpu..

Cost-push inflation is a rise in the general price level : Cost-push inflation is a rise in the general price level due to higher input prices. Cost-push inflation is a rise in the general price level due to the economy operating past or above potential output/income.

Identified two sources of macroeconomic expectations : If inventory levels across the nation are unexpectedly low, what would you expect to see happen to unemployment and inflation? Economists have identified two sources of macroeconomic expectations, what are they?

Produces zero output in the short run : Which of the following is not true if a firm shuts down and produces zero output in the short run: A. Variable cost will be zero B. Losses will be incurred C. Fixed costs will be greater than zero D. Fixed cost will be less than zero.

More toward concentration or toward competition : Is the US economy moving more toward concentration or toward competition? If it's moving toward concentration, there is a need for antitrust laws. But if it's moving more toward competition (the view of the Chicago school), do we really need antitrus..

User Account

All Pages