d. Calculate the marginal product of capital MPK.MPK =21.33e. Calculate the marginal product of labor (MPL).MPL =83.33 National Income: Where It Comes From and Where It Goes – End of Chapter ProblemAn economy has the following Cobb-Douglas production function: Y = 100K 3 LÍ. The economy has 125 units of capital and64 units of labor.

Marginal productivity of an input refers to the increase in the total quantity produced using that…

Answered: d. Calculate the marginal product of…

d. Calculate the marginal product of capital MPK. MPK = 21.33 e. Calculate the marginal product of labor (MPL). MPL = 83.33

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter20: Economic Growth

Section: Chapter Questions

Problem 29CTQ: How is the concept of technology, as defined with the aggregate production function, different from...

See similar textbooks

Related questions

Q: What are the equilibrium effects of an increase in total factor productivity? (Select all that…

A: Total factor productivity refers to enhanced productivity that cannot be directly attributed to…

Q: what is a labour related theory

A: Why one had to look at the sphere of production? As per Karl Marx version of economics, People…

Q: compute the marginal product of capital (MPK) and the marginal product of capital (MPL) of a. Q=3…

A: Labor and capital are widely recognized as the two most significant factors employed jointly in the…

Q: Earl owns and operates a food trailer at the State Fair. After being featured on a na televison…

A: The marginal cost is the change in the total cost when the input is increased by one unit. It is…

Q: The following table shows the DVDS production. Study the table and answer the questions? Labor (L)…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the…

A: Calculation of MPL: Labor Output (TP) MPL 0 0 1 100 100 2 195 95 3 275 80 4 340 65…

Q: When the total product curve is drawn in a figure that measures employment along the horizontal…

A: The production function shows the technical relationship between input factors and final output. In…

Q: In the short run, a firm operates a factory which it leases for $2000 per annum. To increase output,…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: I need help with econ multiple hw questions asap! 101) Typically, as a firm hires additional…

A: (101). Marginal product of labour means the additional output a firm get by using an additional unit…

Q: vorkers is 100 and the total product of three vorkers is 120. The average product of three vorkers…

A: here we calculate the given by following method given below;

Q: Refer to the provided graph showing the marginal product (MPL) and the average product of labor…

A: The curve that depicts the total output amount that could be produced with the amount of labor being…

Q: Total product refers to 1. the change in output produced for a given level of variable input (such…

A: Total Product refers to the total volume of output produced by a firm, for a given quantity of input…

Q: 10- If labor is on the vertical axis and capital is on the horizontal axis, the slope of an isocost…

A: The line that depicts the various combinations of the inputs that are used which tend to cost the…

Q: # of Pickers Total # of Strawberries Picked 180 380 580 4. 780 940 6. 1080 1180 8. 1160 9. 1080…

A: The change in total production caused by adding one more unit of labour is referred to as marginal…

Q: Labour (Units) Total Product (TPP) (MPP) 0 0 1 100 2 250 3 350 4 400 5 420 6 420 Calculate and plot…

A: Answer: Formulas to be used: Average product=Total productLabor…

Q: 24. An isoquant slopes A. O Downward to the left B. O Downward to the right C. O Upward to the right…

A: An isoquant curve is a concave line that depicts numerous combinations of two production parameters…

Q: kindly give the relevant term or concept 1. the addition to total output when one more…

A: "Total product refers to the total output produced by a firm within a given period with given inputs…

Q: Draw a graph explaining how a typical worker chooses how many hours to allocate to work. When…

A: Graph showing the labour supply decision of a worker is given below.

Q: A country's Cobb-Douglas production function is as follows: Y= 5K^(1/2)L^(1/2). If this country has…

Q: (Table) Based on the table, what is the average product of the sixth worker? a. 7 b. 8 c. 7.75 d.…

A: The total amount of output that is being produced with a given input amount during a given time…

Q: OThe profit-maximizing quantity of labor equates the marginal product of labor with A) the average…

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

Q: Assume no change in the labour force. In the 2030s, physical capital increased by 20% and GDP…

A: The marginal product of capital refers to an increase in the total product because of an additional…

Q: 17. If a firm's MPL = 2.0 when that firm hires 25 units of labor to produce 100 units, then which of…

A: Firm is hiring the labor to produce the output and for each unit of labor hire there is change in…

Q: Under what assumptions is the aggregate labour demand function to be represented as a…

A: The quantity of labor available to be offered at a certain pay rate is referred to as labor supply.

Q: 66. Which of the following input factor takes risk, innovates and coordinates А. О Сapital B. O…

A: Option D Entrepreneur takes risk in business by allocating his capital and time, does innovation and…

Q: Pizzas are produced using capital as a specific factor and labor as a mobile factor. The graph below…

A: Pizza are produced using capital as a specific factor and labor as mobile factor. Capital owner's…

Q: The following table shows the DVDS production. Study the table and answer the questions? Labor (L)…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: please explain if labour force falling causes a participation rate to decrease?

A: In the labor market, participation rate refers to the total number of individuals whose age ranges…

Q: If RGDP as measured by the Product Market is shown to be $14T, explain what you would expect RGDP as…

A: GDP is the sum of the final market value of all the final goods and services produced within the…

Q: Louise's individual labour supply curve is upward sloping, which of the following is consistent with…

A: Labor supply shows different combinations of wage and number of hours supplied.

Q: 1. AK.25L.75 A=4 K= 75 L= 76 a. marginal product of capital b. total payments of labor

A: We are going to use Marginal rate of technical substitution concepts to answer this question

Q: O A. improvements in technology does not improve standards of living. O B. increases in land use…

A: A pessimistic long run Malthusian always results that the population control does not increase the…

Q: Can you Solve the solution below A. Complete the Column for MRS. Show your solution for each…

A: The required labour-capital function is shown in the next step.

Q: what is the meaning of returns in "returns to a factor"

A: # We know well in long run, even the fixed factor of production also becomes variable. And thus…

Q: van's coffee shop in Al-Khodh currently hires 5 workers. When Safwan's coffee shop dded a 6th…

A: 9. The output fall when Safwan’s coffee shop added a 6th worker is due to the marginal physical…

Q: Suppose than an economy has output Y = AKO.5L0.5, that Y equals $20 trillion, capital K is $25…

A: The productivity of all inputs is referred to as total factor productivity (TFP). TFP measures an…

Q: 66. Which of the following input factor takes risk, innovates and coordinates A. O Capital B. O…

A: Entrepreneurs takes risks in terms of finance, innovate new ideas, and coordinate with their own…

Q: d. Calculate the marginal product of capital MPK. e. Calculate the marginal product of labor…

A: Y = 100 K1/3 L2/3 Differentiating the above production function with respect to capital, we get…

Q: Explain the rule that proft-maximizing frms follow when they decide howmuch capital and labor to…

A: Below is the profit maximizing condition:Marginal Revenue = Marginal Cost

Q: Identify the following variables as procyclical, countercyclical, or acyclical: (1) consumption, (2)…

A: Procyclical variables fluctuate positively in correlation with business cycle fluctuations in the…

Q: DA. The following table gives the marginal product schedule of labour. It is also given that the…

A: Total Product can be calculated by using the Following formula' TPL = Previous Marginal Product +…

Q: uppose that the production function for compact disc player is Q=100L 0.6K 0.4 Where ? is the…

A: Given Q= 100L0.6K0.4 ....... (1) Where Q is total output, L is the quantity of labour…

Q: Assume that the labour force is 20 workers, the capital stock is $4500, and output is $1550. If the…

A: Production function shows relationship between output and inputs. The given production function…

Q: The following picture represents the impact of a change in total factor productivity. What happens…

A: We see that the leisure taken has not decreased, which means that the labor hours reamains the same.…

Q: Alexandro, a French national is working as a Manager in an international company in the United…

A: Alexandro is applying his own cultural belief and want to use the same in United states. He believes…

Question

d. Calculate the marginal product of capital MPK.
MPK =
21.33
e. Calculate the marginal product of labor (MPL).
MPL =
83.33

National Income: Where It Comes From and Where It Goes – End of Chapter Problem
An economy has the following Cobb-Douglas production function: Y = 100K 3 LÍ. The economy has 125 units of capital and
64 units of labor.

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

Draw an example production function in terms of output and capital.GIVE 2 specific properties which define its shape; explain these usingthe definition and properties of MPK.
Suppose that Indonesia's national production function is Y = K 05L 05, where K is the amount of land and Lis the amount of labor. The economy starts when the amount of land owned is 100 units and the number of workers is 100 units. Calculate the following indicators. a. How much output is produced? b. What are the labor wages and land rent? c. What is the share of the output received by labor? d. If a natural disaster occurs that causes the population to be reduced by half, what is the new level of national output? e. What are the new rates of labor wages and land rent? f. What share of output does the labor receive now?
The following data give real GDP, Y, capital, K, and labor, N, for the U.S. economy in various years. Units and sources are the same as in Table 3.1. Assume that the production function is Y-AK0.3N0.7 Year 1970 1980 1990 K 5600 8055 10,946 2000 13,131 14,711 137 2010 15,599 17,682 139 ● Y 4951 6759 9365 L 79 99 119 (a) Calculate total factor productivity (A). By what percentage did U.S. TFP grow: between 1970 and 1980? between 1980 and 1990? between 1990 and 2000? between 2000 and 2010? (b) Plot the short-run production function while keeping capital fixed at the 1970 level. (c) What happened to the marginal product of labor between 1970 and 2010? HINT: Calculate the marginal product numerically as the extra output gained by adding 1 million workers in each of the two years. (The data for employment, N, are measured in millions of workers, so an increase of 1 million workers is an increase of 1.0.)
Suppose the economy's production function is to Y=AKN. If K = 2000, N= 100, and A=1. The calculate Y.
1. Assume individual's utility flow function takes form: u(c) = log(c), and the production function takes form: Y(t) = AK(t) + BL(t). Describe the physical capital accumnlation equation and obtain the GDP growth rate in the following economy: (a) RCK economy (b) OLG economy
4. In an economy that works in accordance with the classical model, the production function is: Y=2KO L°, and both the quantity of labour and capital are 100 units. The marginal product of labour can be written as MPL-KSL0,5. Answer in the table below. a) Calculate GDP. b) Calculate the percentage of labour income within GDP. c) Calculate the equilibrium real wage. a) GDP: b) percantage of labour income: c) equlibrium real wage:
Suppose the production function in an economy is Y = K0.SL05, where K is the amount of capital and L is the amount of labor. The economy begins with 25 units of capital and 25 units of labor. Round answers to two places after the decimal when necessary. a. How much output does the economy produce? units of output
A country has a Cobb-Douglas production function given by: Y = AK0.5H0.1 If total factor productivity is 46, human capital is 1,828, and the capital stock is 2,736, what will this country's GDP be? Do not round until your final answer, when you may round to two decimal places. Country A produces GDP according to the following equation: GDP 5K and has a capital = stock of 13,399. If the country devotes 13% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.
Economics, physical capital represents the uildings or machines used by a business to produce product. The marginal product of physical capital presents the rate of change of output product with spect to physical capital (informally, if you increase e size of your factory a little, how much more Foduct can you create?). articular model tells us that the output product Y is given, a function of capital K, by Y = AKªL'-a ere A is a constant, L is units of labor (assumed to be stant), and a is a constant between 0 and 1. Determine marginal product of physical capital predicted by this del. ned with CamScanner
Question 27Refer to Figure 1. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy. If the United States decided to double its support of university research, this would cause a movement fromn.
OS consumer goods in terms of capital goods in Figure below?
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________. Question options: a) physical capital b) a production function c) human capital d) an aggregate production function