Subject: Analytical question about capital, labor, and TFP, using Cobb Douglas function Details: 4. Output in an economy is produced when labor hours (H) are combined with capital (K) in a way which reflects TFP to produce output (y). The relation is: y=TFP.K0.^0.27 * H^1-.0.27 What is the share of labor income in output? Wh
Graw Mc.Swill, a well-known book publisher, has just bought the rights to publish Billy Blood's latest book "The Microeconomics Massacre." Analysts have estimated the demand for this book to be X = 50,000 - 2,000P, where P stands for per-unit price, and X stands for number of books. Graw Mc.Swill?s cost function to produce the b
I. - Professor Smith and Professor Jones are going to produce a new introductory textbook. Production Function : q = (SJ)1/2 Q = number of pages in finished book S = number of working hours spent by Spent J = number of working hours spent by Jones Smith values labor at $20 per working hour, she spent 900 hours providing t
Grunnings produces drills. The profits associated with drill production are  = 50Q - Q2, where Q is the number of drills produced. The marginal profits (additional profit for each drill produced) are M = d/dQ = 50 - 2Q. (a) Unregulated, how many drills will Grunnings produce? How much profit will b
A) From the following data for the U.S.A., establish the amount of domestic output available for U.S. purchase and the total amount of goods and services available for U.S. purchase: GDP is $1000; gross exports equal $100 while gross imports are $150. (b) Does U.S. GDP always equal U.S. purchases of goods and services when
You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although y
Given the following information pertaining to a small country A with respect to good X under free trade and with a tariff in place Price of X under free trade $12 Ad Valorem tariff 10% Production of X under free trade 2,000 units Production of X with tariff in place 2,300 units Import of X under free trade 600 units Impo
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Suppose we have an economy described by the Solow growth model, with a Cobb-Douglas production function (Y=F(K,AL) = K^α(AL)^-α), a capital share of 0.5; with population, labor-augmenting productivity growth, and depreciation rates given by n =0.01 per year, x = 0.02 per year, and depreciation = 0.045 per year; and with a sav
Suppose we have an economy described by the Solow growth model, with Cobb-Douglas production function (Y=F(K,AL) = K^α (AL)^1-α ), a capital share of 0.5; with population, labor-augmenting productivity growth, and depreciation rates given by n = 0.01 per year, x = 0.02 per year, and depreciation = 0.045 per year; and w