Economies exhibit diminishing marginal product of capital

Assignment Help Business Economics

Reference no: EM131098594

Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production functions in both economies exhibit diminishing marginal product of capital. Which economy will experience higher output per worker for each unit of capital per worker and why?

Reference no: EM131098594

Questions Cloud

What is involved in the evaluation process : What is the objective of this evaluation? What is involved in the evaluation process? Do you think this evaluation is an effective method to assess clients? Why or why not? What is the focus of the assessment?

Understand how taxes affect economic well-being : To fully understand how taxes affect economic well-being, we must compare the

Free products to attract more sales or more demand : If the company hires an incompetent president to run the company. He has the opportunity to introduce his idea for kids toys but his idea failed. He keep reducing the price of the products and eventually give out free products. Is it a good idea to g..

Initialize the two dimensional array : Write a C++ program to select the values in a four by fivearray of positive integers in increasing order and store theselected values in the single- dimensional array named sort. Usethe data statement given in exercise 1 (a) to initialize the two ..

Economies exhibit diminishing marginal product of capital : Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production functions in both economies exhibit diminishing marginal product of capital. Which economy will experience higher output per..

Compute the geometric mean percentage inflation rate : Although inflation has been steady at a 2.5% average rate, economists now see trouble on the horizon due to the increases in crude oil prices over the next eight years. The leading economists in the oil industry expect oil prices to inflate; at first..

Can you beat the market with public information : Can you "beat the market" with public information? That is, can you use publicly available information to help you buy something cheap and quickly sell it at a higher price? Why or why not?

What is the real interest rate the bank paying : Suppose you want to invest some money in the bank. Currently, the bank is paying a rate of 5.5% compounded annually. Assume inflation is expected to be 4.5% per year. After taking inflation into account, what is the real interest rate the bank paying..

What is another phrase used to describe fixed assets : What is the total estimated uncollectible A/R? When is bad debt expense recorded, and A/R written off, under the direct write-off method? What is another phrase used to describe fixed assets?

User Account

All Pages