Assume that the production function is given by y ak05l05, Ask an Expert

Economics

Assume that the production function is given by Y = AK^0.5L^0.5, where Y is GDP, K is capital stock, and L is labor. The parameter A is equal to 10. Assume also that capital is 100, labor is 400, and both capital and labor are paid for their marginal products.

1. What is Y?

2. What is the real wage of labor?

3. What is the rental price of capital (the amount of output paid per unit of capital)?

4. Find the real wage of labor when the available labor increases by 40% ceteris paribus.

5. As a macroeconomist for Country Picolia, you are asked to advise the government on an immigration policy which would lead to entry of more workers into Picolia. What advice would you give the government?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91421478

Have any Question?Write your Review or question?

Related Questions in Business Economics

In a survey of 3439 adults 1418 say they have started

In a survey of 3439 adults, 1418 say they have started paying bills online in the last year. Construct a? 99% confidence interval for the population proportion. Interpret the results.

How has the value of the euro changed compared to other

How has the value of the Euro changed, compared to other countries, over the past 10 years (since the Great Recession began)?

A researcher records the repair cost for 8 randomly

A researcher records the repair cost for 8 randomly selected washers. A sample mean of $60.46 and standard deviation of $18.36 are subsequently computed. Determine the 90% confidence interval for the mean repair cost for ...

Smithco is a supplier to many brand name makers of mobile

SmithCo is a supplier to many brand name makers of mobile phones. SmithCo manufactures the external shells that enclose mobile phones. The strength of a shell is measured by applying increasing pressure to the shell and ...

How do changes in income affect consumption and savingwhat

How do changes in income affect consumption (and saving)? What are factors other than income that can affect consumption?

What is the difference between a positive economic

What is the difference between a positive economic statement and a normative one

What do the terms external costs full cost accounting and

What do the terms external costs, full cost accounting, and neoclassical refer each refer to?

Assume p 65 - 2q the cost per additional unit mc is zero

Assume P = 65 - 2Q. The cost per additional unit (MC) is zero for the first five units, and then $5 per unit after that. There are fixed costs of $50. Once the optimal level of output is determined, how much profit does ...

With most of the worlds nations either having moved to

With most of the world's nations either having moved to market economies, does the nationalization of foreign industries and property have its place?

Link changes in unemployment inflation wages and gdp to one

Link changes in unemployment, inflation, wages, and GDP to one another and how they impacted each other during periods of economic decline (recessions) and periods of economic growth (expansion) over the past 10 years.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert