How much output does the economy produce

Assignment Help Business Economics

Reference no: EM13998512

Suppose the production function in medieval Europe is Y = K0.5L0.5,where K is the amount of land and L is the amount of labor. The economy begins with 100 units of land and 100 units of labor. Use a calculator and equations in the chapter to find a numerical answer to each of the following questions. a. How much output does the economy produce? b. What are the wage and the rental price of land? c. What share of output does labor receive? d. If a plague kills half the population, what is the new level of output? e. What is the new wage and rental price of land? f. What share of output does labor receive now?

Reference no: EM13998512

Questions Cloud

Differences and defensive reactions to ethnocentrism : Triggers are ethnocentric responses to differences and defensive reactions to ethnocentrism. Any number of things can serve as triggers, but they generally fall into the following categories: voice, appearance, attitude, and behavior. Please describe..

Consequently the exploration for and production of oil : Unlike the 1970s, when world oil prices skyrocketed,P the 1980s were a decade of falling oil prices. From 1981 to 1986 the price of a barrel of crude oil fell from $42 to$15. Consequently the exploration for and production of oil in the world declin..

What is the marginal product of unskilled labor hours : You are in charge of a large firm, Drexanto, which has developed a new variety of corn for farmers that is highly resistant to disease and bugs. What is the marginal product of skilled labor hours? What is the marginal product of water?

How much output does the economy produce : Suppose the production function in medieval Europe is Y = K0.5L0.5,where K is the amount of land and L is the amount of labor. The economy begins with 100 units of land and 100 units of labor. Use a calculator and equations in the chapter to find a n..

Best describes the relationship between china and japan : Which of the following best describes the relationship between China and Japan in the 1600s? From the mid-1500s to 1830, the largest group of immigrants to the Americas consisted of. What was the leading Russian export that traveled on the Inner Eura..

Indifference curves between charitable contributions : Don is altruistic. Show the possible shape of his indifference curves between charitable contributions and all other goods. Does this indifference curve violate any of our assumptions? Why or why not?

Find the demand equation and find the supply equation : The consumer of a bottle is willing to pay $18 for 3000 bottles but for every $8 decrease they are willing to buy 9000 more bottles. the suppliers will not supply any bottles at a price of $6 per bottle, but are willing to sell 3000 bottles for a uni..

Large percentage of total assets : Suppose someone says that a relatively small percentage of Americans own a large percentage of total assets and that therefore the government should redistribute wealth to those less fortunate. Which part of that statement is normative and which part..

User Account

All Pages