Marginal product of capital is decreasing

Assignment Help Business Economics
Reference no: EM13851895

Cobb douglass production function,

a) What does it mean that marginal product of capital is decreasing? Show the marginal products are diminishing in the cobb-douglas case.

b) Determination of steady state capital per worker consider the steady state capital per worker k*, how is k* affected by the following? (a) Increase in savings rate (b) Increase in Technology (c) Increase in depreciation (d) Increase in population rate

Reference no: EM13851895

Questions Cloud

Value functions is loss averse : Determine if each of the following value functions is loss averse. (a) v(x) = 0.25x for x > 0 and v(x) = 0.5 for x ≤ 0   (b) v(x) = √x for x > 0 and v(x) = 0.5x for x ≤ 0   (c) v(x) = ex for x > 0 and v(x) = −√−x for x ≤ 0 (d) v(x) = √x for x > 0 and..
What is the deadweight loss resulting from this externality : Suppose that demand for a product is given by Q=1000-P. Supply of the product is given by Q=2P. There is a positive consumption externality from this product, in the amount of $5 per unit. What quantity of the good is consumed under the private marke..
Utility function-how much of each good will he demand : Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
Utility function-demand for both goods double : Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
Marginal product of capital is decreasing : What does it mean that marginal product of capital is decreasing? Show the marginal products are diminishing in the cobb-douglas case. Determination of steady state capital per worker consider the steady state capital per worker k*, how is k* affecte..
Growth without diminishing productivity of capital : Growth without diminishing productivity of capital suppose that the production function is Y=AK. What is the condition for the growth rate of capital per worker, ?what does the s*(y/k) curve look like? Discuss how your results relate to diminishing p..
Find shellys optimal amount of consumption and leisure : Shellys preferences for consumption and leisure can be expressed as U(C, L) = (C − 200)(L − 80) (1) This utility function implies that Shellys marginal utility of leisure is C − 200 and her marginal utility of consumption is L − 80. Find Shellys opti..
What is information asymmetry and example : What is information asymmetry and example? What is moral hazard and example? What is adverse selection and example?
A framework for ethical decision making : A Framework for Ethical Decision Making

Reviews

Write a Review

 

Business Economics Questions & Answers

  Manufacturing of iphone handsets

Why does Apple tightly hold on to the development of iOS but outsources some of the design and all the manufacturing of iPhone handsets?

  Widespread utilize of vending machines in japan

Do vending machines conserve on any possessions other than labor. Does your answer offer any additional insight into the widespread utilize of vending machines in Japan.

  Talk about an industry or a marketplace

Identify also Talk about an industry or a marketplace segment companies were the "wrong" size for the long term.

  Plot both curves to scale

Please plot the following aggregate demand curves from the following equations: Please plot both curves to scale.

  Clarifying resource demand

Clarifying resource demand as well as differs from those determinant product demand.

  Government puts pressure on producers for heavy equipment

During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.

  Constant term if the equation for the demand curve

Illustrate what is the constant term if the equation for the demand curve is written in the form.

  Siegal needs to take pills every month

As a second alternative, Mrs. Siegal can take pain killers. Each pill costs 50 cents also Mrs. Siegal needs to take 30 pills every month.

  What is the industrys long-run supply schedule

A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi = 20). What is the industry's long-run supp..

  Compute its new level of national debt and its new debt-gdp

Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.

  What are the capitals and labors shares of income

The production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What are the capital's and labor's shares of income...

  Write an algebraic formula that gives function of bond

Write an algebraic formula that gives Mr. Midas' demand for money as a function of bond and chequing account interest rates.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd