Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where...
Suppose you were given a production function for the nation of Pluto, Y = A(K.6)(L.4), where Y is GDP per capita, A is Total Factor Productivity, K is physical capital per worker, and L is human capital per worker. Which of the following is true about this production function?
A.)There are diminishing returns to increases in Total Factor Productivity
B.)Pluto only needs human capital per labor to be above zero to have production in its economy
C.)There are diminishing returns to labor and capital
D.)All of the above are true.
Homework Answers
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Suppose you were given a production function for the nation of
Pluto, Y = A(K.6)(L.4), where...
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12. Suppose an economy's production function is specified by y = A(√K,√L), where A represents the...
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d. Assume that the aggregate production function is given by: where Y is aggregate output, K is capital, L is the number of workers in the economy and E is the state of technology. Further assume...
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Suppose the per-capita production function is given by y=\k, where kis capital per person and y is output per person. Suppose that the savings rate in this economy is 50% and capital depreciates at the rate of 25% a year. The steady-state capital-to-labor ratio is: k-1 k 2 k-4 cannot be determined from the above information.
Here we have the production function y=f(K,L)=K3L, where K is capital input and L is labor input. Let K>0, L>0. 1. What are the marginal products of capital and labor re- spectively? 2. Please compute the technical rate of substitution (we as- sume K is on the horizontal axis). 3. Dose this production function show diminishing technical rate of substitution (in absolute value) when K increases? Please give a brief proof. 4. Please prove that this production function features increas-...
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