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Suppose that an economy’s production function is cob-douglass with CRS(Y=AK^α * L^1-α ) and α=.3
a. What fractions of income do capital and labor receive?
b. Suppose that labor force increases by 15 percent. How much does output increase or decrease by in percentage terms? The rental price of capital? The real wage?
c. Suppose that the capital stock decreases by 15 percent. How much does output increase or decrease by in percentage terms? The rental price of capital? The real wage?
d. Suppose that a technological advance raises the value of the parameter A by 15 percent. How much does output increase or decrease by in percentage terms? The rental price of capital? The real wage?
When comparing different alternatives?
helping him to dig bait for fishing, and he also purchased five of John's mature banana trees for 30 clamshells each. What is the GDP of George and John's island in terms of clamshells
q.a monopolist faces the inverse demand for its output p 30 - q the monopolist also has a constant marginal and
Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy Commission. The demand function for gas in Zar has been estimated as: In the absence of any gov..
Elucidate how you arrived at your answer and be sure to show all your calculations. Explain how many units of output will the firm produce at a price of $100 per unit
Opportunities being taken or missed out can be the be-all and the end-all for a company. How does market research help in opportunity recognition? Feel free to use examples in support of your answer.
For the past several years, in order to sustain sales and profit growth, Harley has relied heavily on baby boomers to buy motorcycle in an effort to recapture their youth and rebelliousness. However, that market segment is quickly aging out of mainst..
You do not incur any cost to produce goods you sell and thus your profit equals selling price if you make a sell. Or three sellers do not have any costs either.
illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods.
q1. illustrate the positive part for us economic by getting the oversea factories back?q2. illustrate does the fed get
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..
______Companies that have flat organizations tend also to have
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