An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stockis 1,237. What will be their level of investment?Do not round until your final answer, when you may round to two decimal places. The marginal product of labor for a firm is given by: MPL = 118 - 3H, where H is the number ofhours they hire workers to work. For example, the marginal product of the first hour of labor wouldbe 118 - 3*1, and the marginal product of the second hour of labor would be 118 - 3*2.If the market wage is $19 per hour, how many hours of labor will this firm hire?Round your final answer to two decimal places.

Since you have posted multiple question, we will solve the first one for you. If you want any…

An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places.

An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock is 1,237. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Finance

Section: Chapter Questions

Problem 2WNG

See similar textbooks

Related questions

Q: In Canada, in the majority of cases where there is a natural monopoly, how does the government…

A: Monopoly A monopoly is a form of market where there is only a single seller in the market. A…

Q: The Federal Reserve buys $20.00 million in Treasury securities. If the required reserve ratio is…

A: Given Required reserve ratio rr = 25% excess reserve ratio er = 10% part (a) When Federal Reserve…

Q: By giving examples, briefly discuss i) the limitations of unit roots & cointegration approach and…

A: Answer :- INTRODUCTION:Here we will explain the root limitations, the method of integration…

Q: American companies form the majority of MNCs (multi-national corporations). On the other hand, many…

A: The MNC or international business operate in different companies and thus they face different…

Q: The demand and supply curves for instant oatmeal are as follows: Qa = 100.5Pd, where Qa is the…

A: Equilibrium in the competitive market is achieved where demand equals supply

Q: using supply and demand analysis explain the effect on the price and quantity of red wine if…

A: Demand is the quantity of an item or service that people buy at various prices over a specific time…

Q: 5. Describe the reasons behind the new attention to the issue of income inequality in the United…

A: income inequality, in economic aspects, critical uniqueness in the dispersion of pay between people,…

Q: Question 1 Suppose a British Columbia has a total of 12 units of labour, which can be used to…

A: Shortage in financial matters alludes to when the interest for an asset is more prominent than the…

Q: Macroeconomic information for an economy is given below. (a) How much productive did labor become…

A: Answer to the question is as follows:

Q: This problem asks you to analyze the IS-LM model algebraically. Suppose consumption is a linear…

A: Given information: Linear function, C(Y - T) = a + b (Y - T) Investment linear function, I (r) = c -…

Q: Suppose that with a budget of $110, Deborah spends $66 on sushi and $44 on bagels when sushi costs…

A: Given; Income; I=$110Money spent on sushi= $66Money spent on bagels= $44Cost of 1 piece of…

Q: a. Define horizontal and vertical equity. b. Using information from the table below, calculate the…

A: (A) Horizontal equity- Horizontal equity is an economic theory that expresses that people with…

Q: What is the labor force participation rate for a nation with an adult population of 33 million, 17…

A: The measure that depicts the number of individuals that are employed and not unemployed who have…

Q: A. Explain how MP = decreasing within the Cobb - Douglas function ( explain the functions and their…

A: Cobb- Douglas production is the technological representation of the two input production approach in…

Q: It is often a momentous decision for a successful national company to become an MNC. What are the…

A: A multinational corporation typically has offices and/or factories in several countries, as well as…

Q: Briefly explain whether you agree or disagree with the following statements. ( a) 'If nominal GDP is…

A: The sum total of final.values of good and services is referred to be as GDP.

Q: City’s hotel tax used to be 20%. Today it is 12%. Total hotel tax revenue today is greater at a 12%…

A: In the above diagram, when tax rate is 12% than supply curve shifts to the left from S to S' which…

Q: What are the 3 basic economic problems? Briefly

A: An economic problem is one that arises as a consequence of a scarcity of resources and requires…

Q: Md=RY(0.5-i) Where RY is nominal income and (0.5-i) is a function of the i, Ratio of currency to…

A: A person's income is said to be nominal if it is not adjusted for changes in buying power, which…

Q: age 65 he can make a guaranteed annual withdrawal of $40,000 forever without touching the corpus,…

A: Present worth is the amount of cash that should be put resources into request to accomplish a…

Q: Due to the severity of COVID 19 on households, the government of Australia announced Job Keeper…

A: COVID 19 causes deadly disease and affects everyone in the world. However, the effects are taken…

Q: A change in but not a change in demand. a. Income distribution. b. Population. c. Tastes or…

A: A change in the quantity Demanded is usually called as the change in the specific amount of the…

Q: Ways on How to Raise Money through: Angel investing Venture Capital Selling stock to the Public

A: It could be money, equipment, land, a building, or anything else. The process of purchasing assets…

Q: For each of the following given information, indicate which form of the efficient market hypothesis…

A: Efficient market hypothesis is a financial theory which says the securities prices reflect all the…

Q: Guitars 100 25 75 100 50 Ukuleles In the above figure, the opportunity cost of moving from producing…

A: The next best alternative is frequently referred to as opportunity cost. It's also known as the…

Q: Explain why a market economy may or may not be an ideal solution for a healthcare system?…

A: Health economics is the study of health care providers, hospitals and clinics, managed care, and…

Q: Question 21 Markup Qc What is the level of profit for the monopolistically competitive firm in the…

Q: Explain the above graph in details (Market signalling) Signalling Model Of Education

A: The problem of asymmetric information arises in a market when one party to a transaction possesses…

Q: eassy in 250 words. What is the role of the Central Bank? How does central bank regulate monetary…

A: A central bank is a government agency that manages banks, implements monetary policy, and offers…

Q: What is the role of the Central Bank? How does central bank regulate monetary policy?

A: The central bank is the apex institution that manages monetary policy in the economy.

Q: It is the quantity of a certain commodity that is bought at a certain price at a given place and…

A: The total amount of products and services purchased in a given economy over a specific time period…

Q: 2) A consumer has the utility function U(Q₁, Q₂) = Q1Q2 and can buy good X at 1 TL a unit and good Y…

A: Choices that maximize utility, or those that satisfy the marginal decision rule, yield demand curves…

Q: Price Quantity Demanded Quantity Supplied $1 40 18 $2 35 22 $3 30 30 $4 25 40 $5 20 44 According to…

A: Demand is defined as the quantity of goods purchased at various prices by consumers during a certain…

Q: A. Will you invest a project that requires a $ 200,000 today and returns $50,000 at the end of the…

Q: 2. Let the production function be as follow: q(L,K) = 10.7 K0.3 Also assume w=2 and r=4 a. Find out…

A: Production function is the function or the relation between the technology and quantities of…

Q: Consider the following Malthusian Model. Suppose that output in the economy is described by Y =…

A: In a Malthusian model, a technological change is only supposed to increase the level of population.…

Q: In the Solow model with exogenous technological progress, if the depreciation rate is 4%, the…

Q: What is quantitative easing

A: In economics, quantitative easing refers to the part of the Central Bank's action when it decides to…

Q: 2. Let the production function be as follow: q(L,K) = 10.7 K0.3 Also assume w=2 and r=4 a. Find out…

A: Production costs allude to the costs an organization causes from assembling an item or offering a…

Q: Select one: O a. number of workers grow at 3 per cent while the number of effective worker O b.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Provide specific real life example (Quanti and quali data) for equilibrium prices and quantity

A: Equilibrium price and quantity are determined at the intersection of demand and supply curve .…

Q: 14. Tim has a $5000 bond with a 4.6% coupon. Tim purchased this bond for $5195. What is the yield of…

A: Bond yield alludes to the normal profit generated and acknowledged on a fixed-income investment over…

Q: On the following graph, use the orange points (square symbol) to plot points along the portion of…

A: Cost Curves show the varying levels of costs that get incurred in the production process of goods.…

Q: Importance of business?

A: Production refers to the process by which goods and services are produced or manufactured or…

Q: Suppose that the production function is V=5 With this production function, the marginal product of…

A: production function, in economics, equation that expresses the relationship between the quantities…

Q: 2. If it takes 116.57 yen to buy one dollar, it takes $.0085785 to buy one yen.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Soal 44 The total benefit that a person receives from the consumption of goods and services is…

A: The consumption of any good or service provides satisfaction which is counted in utils.

Q: We are sitting in an "original position" behind a "veil of ignorance." What political philosophy is…

A: This a MCQ .

Q: Discuss the impact of contractionary monetary policy on the LM curve

A: The primary goal of monetary policy is to keep the money supply under control throughout the economy…

Q: what are the determinants of demand for a product

A: Demand is the quantity of a good or service that people purchase at different prices during a given…

Question

An economy is currently at it's steady state. Their depreciation rate is 10.5% and their capital stock
is 1,237. What will be their level of investment?
Do not round until your final answer, when you may round to two decimal places.

The marginal product of labor for a firm is given by: MPL = 118 - 3H, where H is the number of
hours they hire workers to work. For example, the marginal product of the first hour of labor would
be 118 - 3*1, and the marginal product of the second hour of labor would be 118 - 3*2.
If the market wage is $19 per hour, how many hours of labor will this firm hire?
Round your final answer to two decimal places.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose an economy makes investment of five units every year for the next five years. The annual depreciation rate of capital is 10%. The current level of capital is 60. What is the level of capital in two years from now?
Eduardo has $7,000 in savings. His bank pays 6% interest per year on savings. He withdraws all of his savings to purchase a machine for his business. At the end of the year, he can resell the machine for $1,000. Based on this information, what are Eduardo's economic costs for the year, in dollars? Enter a number only, no $ sign.
what is the steady state of equilibrium for capital labor (K) if the national savings rate is 0.14 and the depreciation rate is 0.04?
Consider a perpetuity with a coupon of 100. Imagine that the perpetuity is purchased at time t when the market interest rate is equal to 5%. Furthermore, imagine that the coupon income is taxed at 40% and that capital gains are taxed at 20%. What is the after tax rate of return if the perpetuity is sold at time t+1 when the market interest rate continues to be equal to 5%?
An economy has production function Y = K¹/2L¹/2, a savings rate of 60 percent. There is no technological progress or labour force growth. The depreciation rate initially 10 percent, increases to 40 percent. There are 400 workers in this economy. When the depreciation rate is 40 percent, output will be equal to dollars.
Suppose you purchase a new house for $200 000, making a down payment of 5% and takingout a mortgage on the balance. What is the return on your investment in your house if one yearlater the price of your house increased by 10%? (show your work).A) 100%B) 150%C) 200%D) 220%
Describe the Actual-Dollar Analysis?
Suppose that the one-year interest rate in Australia is 7.66% p.a. and in New Zealand, it is 8.63% p.a. Suppose also that the current spot rate is EAUD/NZD=1.1578 and the current 12-month forward rate is FAUD/NZD=1.046. Assuming there are no transaction costs, which of the following is true? Selected Answer: A. An arbitrager can make a profit of 0.1054 AUD for every AUD he borrows to invest in NZD assets. B. An arbitrager can make a profit of 0.1054 NZD for every NZD he borrows to invest in AUD assets. C. An arbitrager can make a profit of 0.0186 AUD for every AUD he borrows to invest in NZD assets. D. An arbitrager can make a profit of 0.0186 NZD for every NZD he borrows to invest in AUD assets. E. An arbitrager cannot profit in this scenario as covered interest parity holds The correct answer is B please explian it and show your calculation process
Assume the capital stock depreciates at a rate of 15% per year. If the capital stock started the year at 100 and finished the year at 104, what was capital investment for the year? (Where capital investment is Investment exclusive of changes in inventory and residential investment.) Round to two decimal place and do not enter the $ sign. If your answer is $6.124, enter 6.12. If your answer is $6.125, enter 6.13. If appropriate, remember to enter the - sign.
Your firm has the opportunity to buy a perpetual motion machine to use in your business. The machine costs $1,000,000 and will increase your profits by $75,000 per year. What is the internal rate of return? Instructions: Enter your response as a percent rounded to one decimal place. The internal rate of return is percent.
An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $2500 and his stock in Company B was worth $6360. The stock in Company A has decreased 23% since last year and the stock in Company B has decreased 5%. What was the total percentage decrease in the investor's stock account? Round your answer to the nearest tenth (if necessary).
Use the following information to answer the question which immediately follows 200-80r, L= 0.5Y Y 2,000 GT= 200, Cd 400+0.9(Y What is the value of investment 2. T)-600r. Id Select one: a 150 4 b. 160 360.5 d. 200 500, M-5000, P=7.35,=0.02 27