Solve for the amount of labour and capital in each industry

Assignment Help Business Economics

Reference no: EM13853442

Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. (a) Solve for the amount of labour and capital used in each industry. (b) Suppose the number of workers increases to 125 due to immigration, keeping total capital fixed at 100. Again, solve for the amount of labour and capital used in each industry. (c) Suppose the amount of capital increase to 125 due to FDI, keeping the total number of workers fixed at 100. Solve for the amount of labour and capital used in each industry, again. (d) Explain how your results in (b) and (c) relate to the Rybczynski theorem

Reference no: EM13853442

Questions Cloud

Which immunological process is impaired in jeremiah? : Which immunological process is impaired in Jeremiah? Which is the gene/s that could be implicated in this deficiency?

Find the incremental benefit using either one of function : Three years ago Maricopa County implemented a policy to tackle the problem of particulate matter in the air. The project/policy consisted in paving and compacting some of the roads the dairy industry uses for feeding the cattle and transporting the m..

Find function for how much capital and labor firm : A firm has a production function represented by: q=L^(.75)K^(.25) Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r. Suppose w=15 and r..

Expected revenue-expected variable costs and expected costs : Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..

Solve for the amount of labour and capital in each industry : Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..

How the process of noise can reduce the value of promotions : Explain how the process of noise can reduce the value of promotions within a busy and crowded marketplace.

Discuss in detail one vulnerability analysis tool : Discuss in detail one vulnerability analysis tool that is suitable for this (deployment) environment - You have the liberty to consider open source or free products such as OpenVAS.

Maximum acceptable value of the standard deviation : What is the maximum acceptable value of the standard deviation (σ) for Meena to be selected? The customer's spec limits are still 300 + or - 100 hours

What is the relationship between genes and chromosomes? : What is the relationship between genes and chromosomes?

User Account

All Pages