Given a demand function of P = 104 - 3Qd and supply of P = 29 + 3Qs, the utility function U = Qx0.3Qy(1-0.3) and the consumer budget 125=7Qx +3Qy along with the firm production function Q=K0.3L0.3 with the isocost 24620K+ 10L. The economic growth factor is 1.4. What is the transfer of surplus, between HH and firms in the output market if there is a binding price control at 85,? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
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- If the production function describing an economy is Y= 20 KL23, then the share of income going to capital: O is about 33 percent. O depends on the state of technology. is about 67 percent. depends on the quantities of labor and capital.Given a demand function of P = 119 - 7Qd and supply of P = 38 + 4Qs, the utility function U = Qx0.4Qy(1-0.4) and the consumer budget Income = 5Qx + 6Qy along with the firm production function Q = K0.4L0.6 with the isocost 224 = 23K + 13L. The economic growth factor is 1.8. What is the total utility of HH given the level of factor income? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).Given a demand function of P = 107 - 2Qd and supply of P = 21 +7Qs, the utility function U = Qx0.8Qy(1-0.8) and the consumer budget 189 = 8Qx + 3Qy along with the firm production function Q = k0.8₁ 0.5 with the isocost 200 21K + 14L. The economic growth factor is 1.3. What is the new level of income from labor after wages grows by the economic growth factor while maintaining the same level of output? Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
- A country's production is described by the function 2 1 f(x, y) = 30x³y3 units, when x units of labor and y units of capital were used. a) Compute and f,- b) What is the marginal productivity of labor and the marginal productivity of capital when the amounts expended on labor and capital are 100 units and 30 units, respectively? c) In order to increase the country's productivity, should the government have encouraged capital investment rather than increasing expenditure on labor?For the Cobb-Douglas production function P and isocost line (budget constraint, in dollars), find the amounts of labor L and capital K that maximize production, and also find the maximum production. Then evaluate and give an interpretation for |å| and use it to answer the question. (a) Maximize P = 2000L3/5K2/5 with budget constraint 15L + 32OK = 8000. L = K = P = (b) Evaluate and give an interpretation for |21. Each additional dollar of budget increases production by this amount. (c) Approximate the increase in production if the budget is increased by $80. unitsQ2) The production function of a small economy is Y=K0.3L0.7, K is the amount of capital (land), L is the amount of labor. The economy starts with 70 units of land and 80 units of labor. a) How much output does the economy produce? b) What are the wage and the rental price of land? C) What share of output does labor receive? d) If a plague kills half the population, what is the new level of output? e) What is the new wage and rental price of land? f) What share of output does labor receive now?
- Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. ( Maximum100 words).Given a demand function of P = 114 - 7Qd and supply of P = 27 + 6Qs, the utility function U = Qx0.4Qy(1-0.4) and the consumer budget 160 = 8Qx + 7Qy along with the firm production function Q=K0.4₁0.7 with the isocost 289 = 23K +14L. The economic growth factor is 2.2. What is the marginal rate of substitution between good X and good Y at Qx= 4 and Qy=18 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).a) What are the determinants of production? Explain.b) Suppose that an economy’s production function is in the Cobb–Douglas form with parameter α = 0.3. What is the production function equation? What does each component stand for?
- The production of a product is characterised by the function f(x, y) = 16x/4y3/4, where x is the number of units of labour and y is the number of units of capital needed to produce f(x, y) units of the product. Each unit of labour costs £50 and each unit of capital costs £100. You are given a budget of £500,000 and are asked to calculate the number of units of labour that maximise the production. Enter your answer as an integer. Answer:Heterogeneity and growth, donated by Rodolfo Manuelli Consider an economy populated by a large number of households indexed by i. The utility function of household i is Where 0 i0 > 0. Let total capital in the economy at time t be denoted kt and assume that total labor is normalized to 1. Assume that there are a large number of firms that produce output using capital and labor. Each firm has a production function given by F(k, n) which is increasing, differentiable, concave and homogeneous of degree one. Firms maximize the present discounted value of profits. Assume that initial ownership of firms is uniformly distributed across households. a. Define a competitive equilibrium. b. i) Economist A argues that the steady state of this economy is unique and independent of the ui functions, while B says that without knowledge of the ui functions it is impossible to calculate the steady-state interest rate. ii) Economist A says that if k0 is the steady-state aggregate stock of capital,…Assume that digital revolution popularizes the use of artificial intelligence (computers) in the workplace. The production function becomes: Y = 0.25 K(2/5)(ACN)(3/5) where C stands for the number of computers.: a) Use growth accounting to predict the increase in total output in response to an increase in the number of computers by 10 percent. b) The nominal interest rate on government bonds equals 9 percent and inflation equals percent. The rate of GDP growth is equal to the result obtained in (a). Use the debt dynamics equation and graph to explain whether or not the level of public debt in percent of GDP can be stabilized if the government runs a primary deficit. c) Use the neoclassical investment model (equation and graphs) to assess the impact of a decrease in the number of computers on investment (in traditional physical capital K).