User Account

All Pages

Labor and marginal product of capital for capitalberg

Assignment Help Business Economics
Reference no: EM131381548

Production in the country of CapitalBerg can be characterized by the following function: Y = 2K0.2L0.8 and that CapitalBerg initially has 200 units of labor and 1000 units of capital.

  1. Calculate the marginal product of labor and marginal product of capital for CapitalBerg.
  2. Show with calculus that the production function exhibits diminishing returns to capital.
  3. Calculate the total payments to labor and capital in CapitalBerg.
  4. Suppose that in CapitalBerg there is a large increase in investment that adds a lot more capital to the economy. What happens to the rental rate of capital and real wage rate in CapitalBerg? Briefly explain.
  5. Again suppose that in CapitalBerg there is a large increase in investment that adds a lot more capital to the economy. What happens to the income shares of capital and labor in this economy? No math is necessary but it may help to see the answer if you pretend that capital increased from 1000 to 1500 while the amount of labor stayed the same.
  6. In the production function for CapitalBerg briefly explain what the "2" represents.

Reference no: EM131381548

Questions Cloud

How you will develop the process to convince management : Elaborate on how you will develop and implement the process to convince management of its promising benefits and operational effectiveness.
Data centers and cloud computing : What is the difference between data centers and cloud computing?
Is it reasonable to believe the ads may be effective : Polls taken before and after the ad campaign show some increase in the proportion of voters who now recognize this candidate's name, with a P-value of 0.033. Is it reasonable to believe the ads may be effective?
Produce a report on the conditions necessary to successfully : You are a management consultant who has been commissioned by an organization to produce a report on the conditions necessary to successfully implement a global business strategy.
Labor and marginal product of capital for capitalberg : Production in the country of CapitalBerg can be characterized by the following function: Y = 2K0.2L0.8 and that CapitalBerg initially has 200 units of labor and 1000 units of capital.
What is the power of this test : Given that a computer fails the test, what would you decide? What if it passes the test?
What is the alternative hypothesis : How could you lower the probability of a Type I error and increase the power of the test at the same time?
Positive effects of the price ceiling : Your essay should be 2-3 paragraphs long, your thoughts should be well organized and you should address the following questions: Let's say that the government imposes a price ceiling on gasoline, what would be the positive effects of the price ceilin..
Linear relationship between returns and book to market value : where the number in parentheses is the standard error of the slope estimate. The sample size used is n = 18. Is there evidence of a linear relationship between returns and book to market value?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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