15 is B, answer 16 only a negative sign to indicate that.)15. For this question use this aggregate production function as a model of output.Y = A x VK × vĪThe marginal product of capital can be defined as the extra output (Y) that would be produced if youincreased the capital (K) by one unit. For simplicity assume A = L = 1. Fill in the MPK for each level ofcapital in the table.KMPK149.What do you notice about the MPK as K increases while Land A are held fixed?a. it gets smaller and smallerb. it gets larger and largerc. it stays the same without any changed. it goes down and then back up 16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes theMPKS in the higher TFP column?KMPK for TFP = 1MPK for TFP = 249.a. the MPKS are all higherb. the MPKS are all lowerC. some of them are higher and some are lower

Given Production function Y=AKL

16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes the MPKS in the higher TFP column? K MPK for TFP = 1 MPK for TFP = 2 1 4 9. a. the MPKS are all higher

16. (continued) What if the TEP increases? Fill in the table below to study that. What best describes the MPKS in the higher TFP column? K MPK for TFP = 1 MPK for TFP = 2 1 4 9. a. the MPKS are all higher

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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For this question use this aggregate production function as a model of output. Y=A×/Kx/L The marginal product of capital can be defined as the extra output (Y) that would be produced if you increased the capital (K) by one unit. For simplicity assume A =L=1: Fill in the MPK for each level of capital in the table. K MPK 9 What do you notice about the MPK as K increases while L and A are held fixed? it gets smaller and smaller it gets larger and larger it stays the same without any change it goes down and then back up
The production function for an economy can be expressed as Y= F(K,L), where Y is real GDP, K is the quantity of capital in the economy, and L is the quantity of labor in the economy. If Y = K0.5 L0.5, what is real GDP if the quantity of capital is 900 and the quantity of labor is а. 400? b. What is/are the endogenous variable(s) in this model? What is/are the exogenous variable(s) in this model? с.
Question: Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution. My Note: This is my first time resubmitting, I was told to confirm that MXC(Q) =10 is the correct form of the Marginal cost of extraction to answer this question correctly. I'm not sure but this is the way my professor asked his question.
Assume that an economy is based on three industrial sectors: agriculture (A), building (B), and energy (E). The technology matrix M is: A BE uarruarruarr (4 [0.6 0.2 0.1 0.4 0.1 0.1 0.4] 0.1 0.1 B 0.1 M How much input from A, B, and E are required to produce a dollar's worth of output for B? How much input from A is required to produce a dollar's worth of output for B? How much input from B is required to produce a dollar's worth of output for B? How much input from E is required to produce a dollar's worth of output for B ? Assume that an economy is based on three industrial sectors: agriculture (A), building (B), and energy (E). The technology matrix M is: A BE ↑ ↑ ↑ A-> 0.6 0.2 0.1 B-> =M 0.1 0.4 0.1 E-> 0.1 0.1 0.4 How much input from A, B, and E are required to produce a dollar's worth of output for B? How much input from A is required to produce a dollar's worth of output for B? How much input from B is required to produce a dollar's worth of output for B? How much input from E…
1. The Grossman model uses the economic concept of a production function. Before you dive deeply into the Grossman model though, I want you to think more generally about the concept of a production function as it relates to health status. A production function describes the relationship between inputs and outputs for a production process. For a business, the inputs are labor, capital, raw materials, etc. and the output is the finished product. The production function is often describe mathematically using an equation like the one below: Y = K¹/3L2/3 Where Y is the amount of output from using K units of capital and L units of labor. a. Now consider a production function for something very different: in the United States. That is, consider a average life expectancy production function where Y = life expectancy measured in years. What do you think are the primary inputs? That is, what are the variables on the right-hand side of the equation? Hint: think broad categories...and there are…
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Hello I need help to find the answer for my econ 101 hw for a question as follows: Assume that the production function for a country is given by ?=√K and annual investment is given by the function ?=?×? where γ=0.270, and that the yearly depreciation rate is 4.50%. Suppose that this year, the output in the country is 1, and a neighbor country's output is 50% higher. Calculate the time it would take for the country's output to catch up with its neighbor's output. Assume the neighbor country's economy is neither growing nor shrinking. I will be also attaching the original problem for your reference as I just need to find the time that it would take the country's output to catch up with its neighbor's output. Thank You and please refer to the image to further assist with the question that I want answered.
15. Consider an economy divided into an agricultural sector (A) and an industrial sector (I). To produce 4- one unit in sector A requires unit from A and unit from I. To produce one unit in sector I requires unit from A and 4 unit from I. Suppose final demands in each of the two sectors are 60 units. Write down the input-output matrix equation for this economy, and then find the number of units that have to be produced in each sector in order to meet the final demands.
6. Consider a three-sector input-output model in which sector 1 is agriculture, sector 2 is manufacturing, and sector 3 is energy. Suppose that the input requirements are given by the following table: Units of agricultural goods Units of manufactured goods Units of energy output 1 unit of agricultural goods needs a 0.4 0.3 1 unit of manufacturing goods needs 0.2 0.1 0.2 1 unit of energy output needs a. Write down the Leontief equation system for the problem. b. What are the values of a and b that give the system unique solution. 0.2 0.2 0.1 (where 0 0), respectively. If x1, x2, and x3 denote the number of units that have to be produced in the three sectors,
(1)The following macroeconomic model describes the economy of CSILAND. Y = C +1+ G + NX.... C = 220 + 0.60 Y.... | = 1000 - 200OR... G = . NX = 525 - 0.10Y - 500R... . (1) .(2) .(3) ..(4) (5) %3D %3D %3D Go....... %3D %3D (a)Write the expression for equilibrium real output, Y. (b)Suppose real interest is 10% and government spending is 1200, determine the value of equilibrium real output. (c)For this economy, find the level of consumption (C), investment (I), and net export (NX). (d)ls there evidence of a twin deficit in CSILAND given that tax revenue is 15% of aggregate real output? Explain.
. Consider the macroeconomic model of a two-sector economy (i.e. no government or trade) using standard notation. Assume that the consumption function is linear, i.e. of the form: C = a +bY . It is known that when ? = 110, the value of consumption, C , is equal to 160.8, and that when ? = 170, the value of C is 207.6. (a) Determine the consumption function and derive the savings ( S ) function for the model. What is the marginal propensity to consume? (b) Determine the equilibrium level of national income when planned investment ? = 255.
5) Refer to Table 22.3.1. above. The tables show the labour market and the aggregate production function schedules for the country of Pickett. a) Plot (create a graph) of both the aggregate labour market and aggregate production function. Using these graphs, what is theequilibrium real wage and quantity of labour? What is the level of real GDP? b) At the equilibrium in the labour market, what is the amount of labour productivity associated with that equilibrium? (Show your calculations) c) If the quantity of labour supplied increases by 20 billion hours at every real wage level, what would be the new level of labour productivity? (Show your calculations) d) If only the quantity of labour supplied is increasing over time, what is the impact on the production function and the level growth rate of real GDP per hour over time? Fully explain your answer.