(b) Time is continuous and the production function of the economy is given by Yt = At( Kt )ª( N₁ ) ¹−¤ Productivity is now given by A₁ = Y where & € (0,1) and (þ + a) < 1. Population grows at a constant rate n as in part (a). (i) What is the intuition behind A = ??? (ii) Find an expression for the growth rate of output per capita (Y₁ / N₁). When is the growth rate of output per capita equal to zero?
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- A large electric utility company releases 62 million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $1.2 billion in capital over the next five years to reduce its annual emissions by 5%.More will be spent after five years to reduce greenhouse gases further. Solve, a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces 3 billion tons of greenhouse gases per year, how much capital must be spent to reduce total emissions by 3% over the next five years based on your answer in Part (a)?. You wish to determine the dynamically efficient rate of extraction of a non-renewable resource of two time periods, t1and t2. The demand function for the resource is known to remain constant over time, and is given by the inverse demand function: Pt = 700 – 0.25*Xt Marginal extraction costs for the resource are constant at 200 (MEC = 200). All of your work (equations, calculations, etc.) must be shown. In addition, you must draw graphs to help you illustrate and explain your solution. You will receive full credit only if you fully explain and illustrate your answers. a) The total available stock, S, is 2500 units and the discount rate is r = 0.05 (5%). What are the dynamically efficient quantities of resource extraction in the two periods? Please call these extraction rates x1 and x2. Also, determine the market price for the resource in each period, P1 and P2. Next, determine the marginal user cost in each period. Finally estimate total welfare (CS and PS) for the…Consider the following Cobb-Douglas production function for the bus transportation system in a city: Q = Lβ1Fβ2Bβ3Where L = labour input in worker hours F = fuel input in gallons B = capital input in number of buses Q = output measured in millions of bus miles Suppose that the parameters (α, β1, β2 and β3) of this model were estimated using annual data for the past 25 years. The following results were obtained: β1 = 0.45, β2 = 0.20 and β3 = 0.30a. Determine the (i) labour, (ii) fuel, and (iii) capital-input production elasticities .b. Suppose that labour input (worker hours) is increased by 2 percent next year (with the other inputs held constant), determine the approximate percentage change in output. c. Suppose that capital input (number of buses) is decreased by 3 percent next year (which, certain older buses are taken out of service). Assuming that the other inputs are held constant, determine the approximate percentage change in output. d. What type of returns to scale appears…
- Which statements are true or false? S1: Different countries face different binding constraints on achievingfaster rates of growth and economic development. S2: A key mission foreconomic development specialists is to help determine the nature of theconstraints for each country.Annual growth in RGDP per capita in China has slowed in recent years due to the pandemic lockdown and now the real estate crisis. Assume GDP per capita was 12.5 trillion (S) in 2015 and is 16.5 trillionin 2023. What is the annual rate of growth in RGDP per capita between 2015 and 2023? A 8.5% в 4.7% с 2.5% D 3.5% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The growth rate of the demand for coal in the world is 6 % per year. In what year will the demand be double that of 1997 ? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Q: Determine whether the following statemnts are true or false: a) If the firm increases the volume of used resources by 30%, and the volume of production thus increases by 20%, then there is a positive effect of the production scale. b) Average fixed costs decrease as production increases. c) The economic profit usually exceeds the accounting profit.Present Economic Study. All answers must be in 4 decimal places. ASUS manufactures 1,000,000 units of netbooks yearly. A new design or the product will reduce material cost by 12%, but will increase processing cost by 2%. If materials cost is Php 1.20 per unit and processing will cost Php 0.40 per unit, Can the company afford to pay for the preparation of the new design and making change in equipment?Just Answer NPW for Proj A
- Cobb-Douglas production function Q = Lβ1Fβ2Bβ3 Where L = labour input in worker hours F = fuel input in gallons B = capital input in number of buses Q = output measured in millions of bus miles Suppose that the parameters (α, β1, β2 and β3) of this model were estimate using annual data for the past 25 years. The following results were obtained: β1 = 0.45, β2 = 0.20 and β3 = 0.30 Suppose that capital input (number of buses) is decreased by 3 percent next year (which, certain older buses are taken out of service). Assuming that the other inputs are held constant, determine the approximate percentage change in output. What type of returns to scale appears to characterize the transportation system (ignore the issue of statistical significance)? Discuss some of the methodological and measurement problems one might encounter in using time-series data to estimate the parameters of this model.Use this method, Exponential decline model, to solve ( in petroleum economics) The production of the oil well decline exponentially, the initial flow rate is 1500 STB/day, the production rate of this well become 120 STB/day in the fourth year, find the production rate after 25 months from the beginning, find yearly production and production rate for this well for the next 4 years?Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)