Business, 31.12.2019 00:31 Kcloughley

Country a and country b both have the production function • y 5 f(k, l ) 5 k 1/3 2/3 l .

what happens subsequently to output per worker in the postwar economy? is the growth rate of output per worker after the war smaller or greater than it was before the war?

a. does this production function have constant returns to scale? explain.

b. what is the per-worker production function, y 5 f (k)?

Answers: 1

Show answers

Answers

Answer from: theresamarieuehling2

a) Yes

$Y= (\lambda K)^{1/3} (\lambda L)^{2/3}$

$Y= \lambda^{1} K^{1/3]L^{2/3}$

$Y= a y =\lambda x$

b) $\frac{Y}{L} =\frac{K^{1/3}L^{2/3}}{L}$

$\frac{Y}{L}=K^{1/3}L^{-1/3}$

And we can express like this:

$Y= (\frac{K}{L})^{1/3}$

$Y= a^{1/3}$ where a is a cosntant. And that would represent the per-worker production function.

When we have a war, we observe a reduction in the labor force and that is translate to math that L decrease, and as a consecuence the Capital-labor ratio k = K/L increase ,since L decrease. So then we can conclude that production output decrease since we have less workers, by the way the output procuded per each worker increase, and as we have that each worker have more capital.

Explanation:

For this case we have the following production function for Country A and B:

$Y=F(K,L) = K^{1/3}L^{2/3}$

Part a, in order to see if we have constant returns to scale we need to show that the function Y we have a linear form Y= aX, wher a is the slope.

If the production function has constant, increasing or decreasing returns to scale w can detemrined this multiplying the capital and labor by a constant $\lambda$

$Y= (\lambda K)^{1/3} (\lambda L)^{2/3}$

Doing algebra we got:

$Y= \lambda^{1} K^{1/3]L^{2/3}$

And we can express the last expression like this:

$Y= a y =\lambda x$

And we can conclude that whn the capital and labour increasse by a factor of a the output increase by a too.

So then the answer for this case is yes.

Part b

In order to find the per workr production function we need to divide out function by L and if we do this we got that:

$\frac{Y}{L} =\frac{K^{1/3}L^{2/3}}{L}$

$\frac{Y}{L}=K^{1/3}L^{-1/3}$

And we can express like this:

$Y= (\frac{K}{L})^{1/3}$

And can be expressed like this:

$Y= a^{1/3}$ where a is a cosntant. And that would represent the per-worker production function.

Answer from: Quest

answer; according to the ( irs );

Answer from: Quest

answer///ability to capture the attention of users;

Another question on Business

Business, 22.06.2019 02:10

Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.

Answers: 1

Answer

Business, 22.06.2019 03:00

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown priceâ€”that is, the price below which it is optimal for the firm to shut downâ€”is per polo.

Answers: 3

Answer

Business, 22.06.2019 06:30

If a team of three workers, each making the u.s. federal minimum wage, produced these 12 rugs, what would the total labor cost be? don't forget that these workers would be working overtime.

Answers: 3

Answer

Business, 22.06.2019 10:40

You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. recently, you saw that stubhub was listing similar seats for $225 apiece. what does it cost you to attend the concert?

Answers: 1

Answer

You know the right answer?

Country a and country b both have the production function • y 5 f(k, l ) 5 k 1/3 2/3 l .

Questions