What is per worker production function in terms of capital

Assignment Help Econometrics

Reference no: EM13188826

Suppose initially (period 0) the economy is endowed with $5 (billion) of capital stock and 10 (thousand) workers (let's ignore the units). We know that saving rate s is 0.15, population growth rate n is 0.01 and depreciation rate d is 0.09. Suppose that the production function takes the form:

Y = K^0.3N^0.7

What is the per worker production function in terms of capital-worker ratio? Based on this information, calculate:

a) capital per worker and output per capita in period 1 and 2

b) capital per worker and output per capita in steady state

Reference no: EM13188826

Questions Cloud

At what price-output combination is total profit maximized : PRESTO Products, Inc, manufactures small electrical appliances and has recently introduced an innovative new dessert maker for frozen yogurt and tofu that has the clear potential to offset the weak pricing and and sluggish volume growth experience..

Determine the time needed to elapse : a thermometer reading 72 degree is placed in a refrigerator where the temperature is a constant 38 degree F.

What are the states and what are the productions : Describe how the problem of traveling from one city to another could be framed as a production system. What are the states? What are the productions?

What is the probability of selecting a freshman : Adams High School has 151 freshman, 198 sophomores, 221 juniors, and 242 seniors. If two students are selected at random without replacement, what is the probability of selecting a freshman on the first selection and a senior on the second selecti..

What is per worker production function in terms of capital : Suppose initially (period 0) the economy is endowed with $5 (billion) of capital stock and 10 (thousand) workers (let's ignore the units). We know that saving rate s is 0.15, population growth rate n is 0.01 and depreciation rate d is 0.09. Suppos..

Solve an increasing number of complex problems : Autonomous (intelligent) software agents are used in Artificial Intelligence to solve an increasing number of complex problems and discuss their main applicability as well as their advantages, limitations and current research trends in the area.

Find the dimensions of the new corral : a rancher wants to enlarge an existing rectangular corral such that the total area of the new corral is 1.5 times that of the original corral. the current corral's dimensions are 250 feet by 160 feet. The rancher wants to increase each dimension b..

Why would items move from a slower layer to a faster layer : Determining the time quantum for a job is a critical task. Given the assumptions that the average switching time between processes is s, and the average amount of time an 110 bound process uses before generating an I/O request is t (t » s). Discus..

Determine the angle of the launch to obtain maximum length : Determine the angle of the launch to obtain the maximum length of the trajectory. Let v0 = 96 feet per second

User Account

All Pages