Consider the economy of a small country that has capital stock equal to 900 units. It saves 20% of its output with a depreciation rate of 10% and a production function of Y = k1/2. How much investment takes place for this small country? a) 180 units b) 3 units c) 90 units d) 6 units

Option (d) is correct.

Explanation:

Given that,

Capital stock = 900 units

Saves 20% of its output

Depreciation rate = 10%

Production function, Y =

                                     = (900)^{\frac{1}{2}}

                                     = 30 units

Therefore, the savings is as follows,

= 20% of output

= 0.2 × 30 units

= 6 units

Hence, the savings is equal to the investment for this small economy or country.

Investment = 6 units

answer; maintain a safe following distance;

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.