Solution-Level of capital stock per labor hour

Level of capital stock per labor hour

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Reference no: EM131221394

Consider the economy of a small country. For each labor hour, it has capital stock equal to 900 units. In the current year it produced 20 units of new capital goods, with a depreciation rate of 20% and a production function of Y= K1/2. What will the level of capital stock per labor hour be next year for this small country?

920 units
720 units
900 units
740 units

Reference no: EM131221394

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Level of capital stock per labor hour

Reference no: EM131221394

Reference no: EM131221394

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