A country's Cobb-Douglas production function is as follows: Y= 5K^(1/2)L^(1/2). If this country has 30,000 unit of capital and 700 workers, find the real wage approximately. Select one: a. 1.21 b. 0.85 c. 0.99 d. 0.55 e. 0.66
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- Consider 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?Suppose y = k^1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, consumption per worker is ________. A.$1.20 B.$2.40 C.$4.80 D.$13.60Suppose the US total output is represented by the standard Cobb-Douglas production function with capital and labor inputs. If all inputs are tripled (and TFP is unchanged), then output per worker Exactly triples B. Increases but not exactly triples C. Is unchanged D. Decreases E. None of the other options
- Given the Production function for Mwaba & Mutale Enterprises as follows: Q = f (k,l) = 300k 2l2 - k 3l3, Assuming the value of K is 5, Determine the value of L, for which APL is maximum Prove that at the point where MPL is equal to APL , APL is maximum. The value of labor input L, for which output is maximum Total output at this value of labourUnder negative returns to a factor, MP remains positive True/FalseConsider a Cobb-Douglas production function, Y=zKα(Nd)1−α, with 0< α <1. (a) Show that this production function exhibits constant returns to scale. (That is, show that when K becomes xK and Nd becomes xNd, Y becomes xY for x > 0. (b) What is MPN? Is it increasing or decreasing in Nd?
- Answer each of the following questions as either true or false. For a statement to be “true,” it must always be true. If there is at least one case where the statement is not true (or if you need more information to be sure), answer “false.” You must justify each answer with an appropriate explanation or counterexample (which may include a relevant diagram). A firm can make widgets using capital and labor according to the production function f(K,L) = 100L + 0.5K. Denote the wage w and the rental rate on capital r. If r is sufficiently high, the firm will not hire any capital, no matter how many widgets it wants to produce.Suppose a firm has a Cobb-Douglas production function given by: Q = A * L^0.5 * K^0.5 If the firm currently employs 100 units of labor and 64 units of capital and produces 500 units of output , can you calculate the value of the total factor productivity for this firm?in an economy with production function Y = 1.5 × K^0.3L^0.7, K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) ________, and the real wage is (approximately) ________. A) 0.5; 0.8 B) 7; 8 C) 0.9; 1.35 D) 1.4; 0.4 E) 0.6; 0.9
- The following are correct statements about the Marginal Productivity of Labor (MPL), EXCEPT: Question 15 options: It is the increase in production per worker generated by technological innovations Is the increase in total production coming from an increase in one unit of labor Is increasing at early stages of production because the beneficial effect of division of labor in early stages of production. It will eventually decline because additional workers will eventually over-saturate the production process.With the Cobb-Douglass production function, the real wage will increase if: A. the supply of labor increases B. total factor productivity increases C. the price of output increases D. the amount of capital decreasesHolding the output of stereo sets constant, a large increase in the use of the input capital will cause the labour input to increase proportionately to capital. True or False?