What fractions of income do capital and labour receive

Assignment Help Business Economics
Reference no: EM132460976

Suppose that the production function is Cobb- Douglas with parameter α = 0.3.

What fractions of income do capital and labour receive?

Suppose that immigration raises the labour force by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?

Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?

Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage

Reference no: EM132460976

Questions Cloud

Prepare journal entries to record January costs : Prepare journal entries (without explanations) to record January's costs for the Augusta division. Include the purchase of materials, incurrence of labor
Discuss about the reduction on energy consumption : Discuss about the Reduction on energy consumption,Increase speed and safe ,Self-driving vehicle automatically intelligently when it is most safe
Understood to be permanent by the financial community : Consider the exchange rate between British pounds and European euros. Treat the pound as the base currency, and the euro as the counter currency
Describe the differences between black and whites : The article assigned for reading in unit five, prepared by, Rosenberg, Groves, and Blankenship (2017) involves the idea of racial disparities associated.
What fractions of income do capital and labour receive : Suppose that the production function is Cobb- Douglas with parameter a = 0.3. What fractions of income do capital and labour receive?
Identify a public policy issue you consider important : Identify a public policy issue you consider important, then compare a selected theory and determine what factors like regulations, special interest groups.
Substitution of labor for capital in agribusiness or busines : Provide an example where we see the substitution of labor for capital in agribusiness or business
Discuss the type of data you would collect : Discuss the type of data (quantitative and/or qualitative) you would collect and explain your rationale for the choice. Explain the sampling strategy you would.
Growth of government involvements in the economy : The growth of economies seems to go hand-in-hand with the growth of government involvements in the economy

Reviews

Write a Review

Business Economics Questions & Answers

  What is the industry long-run supply schedule

A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (Q(I)=20). What is the industry's long-run supp..

  What is cost-minimizing firm expansion path

What is cost-minimizing firm's expansion path will have vertical or horizontal segements.

  Identify the profit-maximizing quantity

a. Suppose A=2. Identify the profit-maximizing quantity of lobster (in pounds) that Roger's sells each Monday.

  Consistent with the increase in revenue

What is the price elasticity of demand for the phones and is this consistent with the increase in revenue? Please give an explanation and show all calculations.

  Are recessions a necessary fact of macroeconomic life

Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic l..

  Equilibrium at the full-employment level of production

In the long run, economies are expected to move toward equilibrium at the full-employment level of production. Governments, particularly in democratic countries with frequent elections, often try to use economic policy in the shortrun to improve the ..

  Considering franchising as unique brand of crepes

Crepe Creations is considering franchising as unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. Suppose now that CC requires that each stall-holder deliver the crepes in its own designated territory. How many franchi..

  Responsibility of christians with regards

What is the responsibility of Christians with regards to economic development, leadership within the community, and the mandates of the Gospel?"

  Explain how irrelevant class was for economics

Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about Explain how irrelevant class was, commenting that he saw no useful purpose for economics.

  What is marie profit from the first year of operation

Until recently Marie worked as an program manager, earning $45,000 annually. Then she opened a Peruvian restaurant downtown. At the end of the first year

  What is behind union decline

According to the article "What's Behind Union Decline" by Alejandro Reuss, what is one factor causing unionization rates to fall in the US?

  Integration between two established regional groupings

Evaluate the progress and prospects of integration between two established regional groupings (NAFTA, ASEAN, CEFTA, Andean Pact, CIS, APEC, etc.). The written comparison should synthesize the theories of international trade and finance to evaluate th..

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