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What happens with no diminishing returns? Consider a Solow model where the production function no longer exhibits diminishing returns to capital accumulation. This is not particularly realistic, for reasons discussed in Chapter 4. But it is interesting to consider this case nonetheless because of what it tells us about the workings of the Solow model. Assume the production function is now Yt AKt . The rest of the model is unchanged.
(a) Draw the Solow diagram in this case.
(b) Suppose the economy begins with capital K0 , and show how the economy evolves over time in the Solow model.
(c) What happens to the growth rate of per capita GDP over time?
The firm’s constant marginal cost of production is, c = 50. The firm may charge an access fee and per unit price (that the consumers can choose not to pay). What are the profit maximizing access fee and price?
i am looking for the modeli answers of the following attached 11 questions the questions are related to poter five
Reverse Innovation is the strategy of innovating in emerging (or developing) markets and then selling these innovations in developed markets. Companies are developing products in emerging countries like China and India for global distribution. How wi..
56.a californian college student consumes internet services i and books b. her preferences are represented by a
In 10 years from now, you want your investment to be able to be worth $50,000. To the nearest dollar, how much must you invest now in an account that will earn 10% compounded annually?
Using the four scenarios, discuss each and choose periods when each scenario has occurred in the u s or other countries a higher interest rates, more capital invested b lower interest rates, less capital invested c lower interest rates, more capital ..
Monetary policy tools used by the Federal Reserve (Fed) today do NOT include
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state
q1. what will happen to the demandsupply curve in case of outsourcing the cost of production decrease profit of the
banking on the chinese internet.net bank limited is a start-up internet bank seeking to develop a worldwide clientele.
Suppose that there is limited commitment in the credit market, but lenders are uncertain about the value of collateral. Each consumer has a quantity of collateral H, but from the point of view of lender, there is a probability a that the collateral w..
An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A’s monthly demand for phone calls is Q1 2,800 200p (with p measured in cents) and Firm 2’s is Q2 5,000 100p. The marginal cost of providing a phone call is 6 ce..
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