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- Please provide calculation and justification for question b to fAccording to the earning equation developed by Mincer, which of the following itemsmust have positive relationship with one’s earning?A. Year of schoolingB. Year of workingC. Number of family membersD. A & BE. All of the aboveGiven this equation could I have an explanation of how to derive MC, AVC,AFC. As well as how then to calculate MC min and AVC min
- The IV monotonicity assumption states that cov(z,u) = 0. True or false1. What are the difference between Direct Method Cash flow withthat of indirect method cash flow, apply them in a given exampleUsing the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as: Q= K0.45 L0.55 Where Q = units of output; L = units of Labor; and K = units of capital What are the marginal products of Labor and Capital? Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale? Explain three significance of returns to scale in Managerial decision making
- Using the annual data for the period of 2000 and 2010, Prof Omanya applied a Cobb -Douglas production function to estimate the production for the Kenya's manufacturing sector using firms listed on Nairobi Securities Exchange. His results were given as: Q= K0.45 L0.55 Where Q = units of output; L = units of Labor; and K = units of capital What are the marginal products of Labor and Capital? Calculate the factor intensity and explain the technique of production that is being used by Prof Omanya How would you characterize the Kenya's manufacturing sector in terms of returns to scale? What are the main three causes of such returns to scale?1) Classify each of the following cost items as mostly fixed or variable:a. Raw materialsd. Administrative salaries g. Direct laborj. Rentb. Depreciatione. Insurance (building & equipment) h. Suppliesk. Payroll Taxesc. Clerical salariesf. Property taxesi. Sales commissionsl. Interest on borrowed moneyCould you explain again how you got part a? I don't understand what RHS is nor what the answer is for the partial derivative for price with respect to wage