11 8Consider an economy where the aggregate production function is given by F(K, L) = 4VKL.All markets are competitive. Suppose the supply of capital and labor are givenby K = 4 and L = 7.Compute the equilibrium real wage. Please round your answer to two decimal plates.Type your answer.9Consider an economy where labor is the only factor of production. The aggregate production function is given by F(L) = 7L04. All markets are competitive. Suppose thesupply of labor is given by L = 37. Compute the equilibrium labor share of the economy.Tyne your answwer.

Disclamer :- As you posted multiple questions we are supposed to solve only first one. Wage rate is…

Consider an economy where the aggregate production function is given by F(K, L) = 4VKL.Allmarkets are competitive. Suppose the supply of capital and labor are given by K = 4 and L = 7. Compute the equilibrium real wage. Please round your answer to two decimal places. %3D

Consider an economy where the aggregate production function is given by F(K, L) = 4VKL.Allmarkets are competitive. Suppose the supply of capital and labor are given by K = 4 and L = 7. Compute the equilibrium real wage. Please round your answer to two decimal places. %3D

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section: Chapter Questions

Problem 5WNG

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