4. If company A has production function f(k)=3k1/3; company B has f(k)=6k1/2, suppose new machinescan make depreciation rate half of the former one and depreciation rate two times of the former one18'2s'= 2s), find the new steady-state condition of company B, and show the shift on the graph. If company Aonly takes total consumption as a priority, should it use the new machines? Show the mathevidence.

Steady state condition is achieved at the point where the investment equals capital requirement at…

If company A has production function f(k)=3k1/3; company B has f(k)=6k1/2; suppose new machines can make depreciation rate half of the former one and depreciation rate two times of the former one 8' = ÷8 2 s' = 2s ), find the new steady-state condition of company B, and show the shift on the graph. If company A onlutakor total concumntion priority chould i+.uce the pew machines? Show the math

If company A has production function f(k)=3k1/3; company B has f(k)=6k1/2; suppose new machines can make depreciation rate half of the former one and depreciation rate two times of the former one 8' = ÷8 2 s' = 2s ), find the new steady-state condition of company B, and show the shift on the graph. If company A onlutakor total concumntion priority chould i+.uce the pew machines? Show the math

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 4E

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