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- If the total product of two workers is 80 and the total product of three workers is 90, then the average product of the three workers is ________ and the marginal product of the third worker is ________. a. 20; 30 b. 160; 110 c. 30; 10 d. 20; 3.33 e. All the other answers are wrong.Consider the production function Y=K1/2 N1/2 a. Compute output when K=37 and N=80 b. If both capital and labour double, what happens to output? c. Is this production function characterized by constant returns to scale? Explain. d. Are there decreasing returns to capital? Explain. e. Are there decreasing returns to labour? Explain. f. Write this production function as a relationship between output per worker and capital per worker. Show all your work. g. Let capital per worker be 6. What is output per worker? Now, double capital per worker to 12. Does output per worker more or less than double? h. Does the relation between output per worker and capital per worker exhibit constant returns to scale? Explain/show your workConsider the augmented production function Y equals A K to the power of 1 divided by 3 end exponent open parentheses H N close parentheses to the power of 2 divided by 3 end exponent, where Y is output, A is total factor productivity, K is capital, N is the number of workers, and H is average years of education. Suppose that A=2, K=8, and N=1000. What is the average product of labor (or output per worker) if H is 15.7?
- Explain factors and production their earnings and all of the aspects like fixed factors, variable factors, short run and long run related to factors of production.Q 1. Given the following production function Y=AKα L 1-α Where; Y is the total output of the economy K is the amount of land, and L is the labor force of the economy Assume A=1 and = 0.5 The initial values of K and L is 100 units. a. How much output does the economy produce? b. What are the wage and rental price of land? c. What share of output does land receive?Q)What is the difference between the average product of labor and the marginal product of labor? Average product shows all explicit and implicit costs while marginal product shows output per unit of labor. Average product shows the change in output that results from employing one additional unit of labor while marginal product shows total output at some level of employment. Average product shows total output at some level of employment while marginal product shows output that results from employing an additional unit of labor. Average product shows output per unit of labor while marginal product shows output that results from employing an additional unit of labor.
- If the marginal product of capital decreases, what happens to the IS curve?(a) It shifts outward.(b) It shifts inward.(c) There is movement along the curve.(d) It remains the same.(e) None of the above.Can you put a solution to this? Instruction: (see other instructions below, for the submission of answer sheet) A. Complete the Column for MRS. Show your solution for each answer, Number each solution that corresponds to each unknown MRS. B. Graph the Labor-Capital function, making sure that Labor units are in the horizontal axis MRS = change in K/ change in L change in K = final K - initial K change in L = final L - initial L MRS = 26-30 /2-1 MRS = -4/1 MRS = - 4 Units of Labor Capital MRS 1 30 0 2 26 -4 3 22.5 (1) 4 19.5 (2) 5 17 (3) 6 15 (4) 7 13.5 (5) 8 12.5 (6) 9 12 (7) 10 12 (8)In ‘standing on shoulder’ effect in the production of ideas existing technology can be productive in the production of new technology just as it is in the production of final goods. True or False
- QUESTION 1a. Is it possible to have diminishing returns to a single factor of production and constant returns to scale at the same time? Discuss.b. Isoquants can be convex, linear, or L-shaped. What does each of these shapes tell you about the nature of the production function? What does each of these shapes tell you about the MRTS?Suppose the production data of XYZ company mentions labor (L) as a variable input and machine (K) as a fixed input. Complete the table as XYZ increases its number of laborers (L). L TP MP AP 1 100 100 100 2 220 120 110 3 270 1) _____ 90 4 270 2)_____ 3)_____ 6 4)_______ 5)_____ 50 8 180 6) ____ 7) ____3. Capital labor ratio is denoted by the equation K/L where K=capital and L=labor. If the total amount of capital remains constant over a certain period of time but the number of workers L grows in the same period, will the value of K/L rise or fall? Justify your answer.