Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Cobb-Douglas production function takes the form Q= AKa L1-a (a=alpha) where Q is the amount of output, K is the amount of capital input, and L is the amount of labor input. Suppose that a firm faces a linear cost-of-inputs function C= wL + rK where C is the cost of inputs, w is the wage rate, and r is the rental rate on capital
(a) Set up a Lagrangian function reflecting the constrained optimization problem of obtaining the most output given a budget C to spend on inputs. Solve this for the optimal levels of capital and labor (Answer: K= (C. alpha)/r , L= C .(1-alpha)/ w )
(b) Set up a Lagrangian function reflecting the constrained optimization problem of spending the least amount on inputs given that the level of output must equal the amount Q. Solve this for the optimal levels of capital and labor. (Answer: K= Q/A .(alpha/ 1-alpha) ^ 1-alpha . (w/r) ^ 1-alpha , L = Q/A . (alpha/ 1-alpha) ^ -alpha . (w/r)^ - alpha
1. Suppose the price of a bond is initially $900 but increases to $950. What is happening to the interest rate on that bond?
Illustrate what are your preconceptions of economics. Do you think economics will be a relatively difficult course.
Ellucidate why is it that wages are not dropping instead they are inching upward on a year to year basis.
question 1according to the solow growth model how would each of the following developments affect output per worker and
Discuss and explain perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings.
Compute the price elasticity when the price changes from $6 to $5(use the arc elasticity formula). What is the change in total revenue from this price change?
According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.
how percapita income fiscal policy laws local economies and census data affect the ability to fund governmental functions.
Describe three ways we can use macroeconomic analysis, with one original example for each way. You are running a small yard maintenance business for the summer.
Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..
1. why does inflation make nominal gdp a poor measure of the increase in total production?2. which component of gdp
analyze the major barriers for entry and exit into the airline industry. explain how each barrier can foster either
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd