Confused and unsure how to solve The production function of a hypothetical economy is:Q=T(L, K)The Q stands for Real GDP; the T stands for the technology coefficient; the L stands for labor, andthe K stands for capital. The graphical representation of this production function is given asfollows.(0) OD T&Suppose that the economy is currently at Point A, where:21 = 0.5 (4,5)LABOR (L)© 22=0.5 (4, 6)22=0.5 (8,5)22=0.5 (3,5)22= 0.4 (4, 5)(?)Now suppose the economy moves to Point B on the graph. Which of the following expressions ismost likely to represent the new Real GDP? Suppose that the economy is currently at Point A, where:Q1 = 0.5 (4, 5)Now suppose the economy moves to Point B on the graph. Which of the following expressions ismost likely to represent the new Real GDP?02=0.5 (4, 6)02=0.5 (85)02=0.5 (3,5)- 02=0.4 (4, 5)Which of the following could plausibly cause the change you just observed?A rise in labor taxesA fall in interest ratesA fall in labor taxeso Advances in technologyThe following graph shows the long-run aggregate supply (LRAS) curve of the economy when it isoperating at Point A.PRICE LEVELIf the change previously identified affects the LRAS curve, shift the curve in the correct direction toreflect this change.LRASReal GDP (Q)LRAS?

"Production function exhibits a relationship between units of physical inputs used in the production…

Suppose that the economy is currently at Point A, where: 21=0.5 (4, 5) Now suppose the economy moves to Point B on the graph. Which of the following expressions is most likely to represent the new Real GDP? 02=0.5(4,6) Q2=0.5 (85) 02=0.5 (3,5) -02=0,4 (4,5) Which of the following could plausibly cause the change you just observed? A rise in labor taxes A fall in interest rates PRICE LEVEL A fall in labor taxes Advances in technology The following graph shows the long-run aggregate supply (LRAS) curve of the economy when it is operating at Point A. If the change previously identified affects the LRAS curve, shift the curve in the correct direction to reflect this change. LRAS Real GDP (Q) 1 LRAS ?

Suppose that the economy is currently at Point A, where: 21=0.5 (4, 5) Now suppose the economy moves to Point B on the graph. Which of the following expressions is most likely to represent the new Real GDP? 02=0.5(4,6) Q2=0.5 (85) 02=0.5 (3,5) -02=0,4 (4,5) Which of the following could plausibly cause the change you just observed? A rise in labor taxes A fall in interest rates PRICE LEVEL A fall in labor taxes Advances in technology The following graph shows the long-run aggregate supply (LRAS) curve of the economy when it is operating at Point A. If the change previously identified affects the LRAS curve, shift the curve in the correct direction to reflect this change. LRAS Real GDP (Q) 1 LRAS ?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if both capital and labor rise by 42%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
Please no written by hand and no image Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if both capital and labor rise by 42%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
Suppose the production function for widgets is given by q=KL+6L²-0.1L³ where q represents the annual quantity of widgets produced, K represents annual capital input and L represents annual labor input. A) Suppose K=10. At what level of labor input does average product of labor reach a maxiumum? How many widgets are produced at that point? B) Again assuming that K=10, at what level of labor input does MPL=0? C)Determine and show whether the production process exhibits law of diminishing returns.
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Assume that we have a Cobb-Douglas type aggregate production function in the form: Y=WKr.L1-r where : W=technology and r is standard share parameter of Cobb-Douglas production function. a. Find Marginal Rate of Technical Substitution (MRTS) between K and L. b. Why does (or does not) technology affects MRTS? Explain. c. Find output per effective labor; capital per effective labor (y=Y/WL and k= K/WL ).
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