What is the per worker production function

Reference no: EM13498450

Consider an economy described by the production function: Y=F(K,L)= K3/10 L7/10.
a. What is the per worker production function?
b. Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, and consumption per worker as a function of the savings rate and the depreciation rate. (Hint: Your answer will be in terms of the variables s and δ.)
c. Assume the depreciation rate is 10%. Make a table showing steady state capital per worker, output per worker, and consumption per worker for savings rates of 0%, 10%, 20%, 30%....all the way to 100%. What savings rate maximizes output per worker? What savings rate maximizes consumption per worker?

Reference no: EM13498450

Questions Cloud

Analyse the corporate culture at enron : Analyse the corporate culture at Enron and its management's behaviour. Include in your analysis, the normative theory of ethics which you would consider most relevant in driving the decision making at Enron.

Does this production function have constant returns to scale : a. Does this production function have constant returns to scale? Explain b. What is the per-worker production function, y=f(k)?

Evaluate the mass percent and molality of nacl : The solubility iof sodium chloride in water is 35.9 g NaCl/100 g of water at 25 degrees celsius. Calculate the mass percent and molality of NaCl in a saturated solution.

Estimate the current in the motor : A 120-V motor has mechanical power output of 2.50 hp. It is 90% efficient in converting power that it takes in by electrical transmission into mechanical power. Find the current in the motor

What is the per worker production function : What is the per worker production function?

Determine how far should the mirror be from the wall : A luminous object is 3.40m from a wall. You are to use a concave mirror to project an image of the object on the wall, How far should the mirror be from the wall

The lodging industry : The lodging industry

At what angle does the ray leave the glass : A rectangular block of glass (n = 1.52) surrounded by a liquid with n = 1.70. At what angle does the ray leave the glass at point B

Identify a relevant general balance-related : Identify a relevant general balance-related and a transaction-related audit objective based on the finding from the risk factors in part b).

User Account

All Pages