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Dependence of the saving rate, population growth rate, and depreciation rate on the capital intensity. Assume that the production function satisfies the neoclassical properties. a. Why would the saving rate, s, generally depend on k? b. How does the speed of convergence change if s (k) is an increasing function of k? What if s (k) is a decreasing function of k? Consider now an AK technology. c. Why would the saving rate, s, depend on k in this context? d. How does the growth rate of k change over time depending on whether s (k) is an increasing or decreasing function of k? e. Suppose that the rate of population growth, n, depends on k. For an AK technology, what would the relation between n and k have to be in order for the model to predict convergence? Can you think of reasons why n would relate to k in this manner? f. Repeat part e in terms of the depreciation rate, δ. Why might δ depend on k?
a firm has the choice of the following investmentsinvestment a costs 5000 today pays a total of 4000 next year and
suppose the equation for demand can be expressed as p 120 -.65q p price of a good and q is the quantity of the good
In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million.
In the last month, the price of gasoline increased by 20 percent. Your job is to determine what caused the increase in price: a change in demand or a change in supply. Ms. Info has all the numbers associated with the gasoline market.
Show the change in Q if L changes from 1 to 2, and 2 to 3, and does the production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?
Four years ago a company purchased a new copy machine. Due to deterioration, soon a new copy machine will be needed.
What are the benefits of being able to assign tasks to team members? How does a responsibility matrix help assign tasks? Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your ..
Energy Max engineering constructed a small office building for their firm 5 years ago. They financed it with bank loan for $450000 over 15 years at 6% interest with quarterly payment and compounding. The loan can be refinanced through an insurance fi..
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The following question depicts the market for oranges from Murray valley, which are sold in units of 90 kilogram boxes. The upward sloping (orange) line represent soppy , and the downward slopping(blue) line represent demand
the firm currently uses 50000 workers to produce 200000 units of output per day. the daily wage per worker is 80 and
Evaluate recent national economic policies as they relate to the magnitude of the trade deficit and analyze the arguments for protectionist policies and the effect, if any, upon the trade deficit
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