An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stockis 1,237. What will be their level of investment?Do not round until your final answer, when you may round to two decimal places. The marginal product of labor for a firm is given by: MPL = 118 - 3H, where H is the number ofhours they hire workers to work. For example, the marginal product of the first hour of labor wouldbe 118 - 3*1, and the marginal product of the second hour of labor would be 118 - 3*2.If the market wage is $19 per hour, how many hours of labor will this firm hire?Round your final answer to two decimal places.

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An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places.

An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter27: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 9CQ

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Question

An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock
is 1,237. What will be their level of investment?
Do not round until your final answer, when you may round to two decimal places.

The marginal product of labor for a firm is given by: MPL = 118 - 3H, where H is the number of
hours they hire workers to work. For example, the marginal product of the first hour of labor would
be 118 - 3*1, and the marginal product of the second hour of labor would be 118 - 3*2.
If the market wage is $19 per hour, how many hours of labor will this firm hire?
Round your final answer to two decimal places.

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