Determine consumption-employment-output and leisure
Course:- Business Economics
Reference No.:- EM13891918

Assignment Help
Assignment Help >> Business Economics

How would i solve, Macro Economics (Williamson 5e), Chapter 5: Mathematical Appendix, Problem #1

For the closed-economy, one-period model, suppose that

U (C, l) = ln (C) + β × l, and

F (K, N) = zK^αN^ (1−α) , where β > 0, and 0 < α < 1. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions. Also, in this problem, show that the competitive equilibrium allocation is Pareto optimal.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Consider the production relationship between total product (Q) and units of labor (L) employed that is presented in the table below. What is the average and marginal product o
Own price elasticity of demand for clothes is -2 and cross price elasticity of demand between clothes and shoes is -0.5. if the store increases the price of clothes by 5%, w
Discuss the basic economic principle supply and demand in verifying that studies have shown that when patients bear a higher portion of the cost for individual clinical decisi
“A producer who is attempting to maximize wealth (or profit) will never knowingly set their output where the demand for their product is ‘inelastic.’” Refute or prove this sta
what amount of additional government spending (without changing taxes) would be needed to reach the desired increase of GDP? what change in total amount of direct taxes (witho
Identify a large to mid-size business within the city or town where you live. Identify three stakeholders who stand to gain or lose the most by the activities of business and
The corporate treasurer of Rollinsford Company expects the company to grow at 3% in the future, and debt securities at 4% interest (tax rate = 35%) to be a cheaper option to f
The following figure shows a screen shot of a sales order form of Carbon River Furniture, a fictitious company. When a customer places an order to buy one or multiple furnit