For a particular economy, the following capital input K and labour input N were reported in four

Question:

For a particular economy, the following capital input K and labour input N were reported in four different years.
For a particular economy, the following capital input K and

The production function in this economy is
Y = K0.3N0.7
where Y is total output.
a. Find total output, the capital-labour ratio, and output per worker in each year. Compare year 1 with year 3, and year 2 with year 4. Can this production function be written in per-worker form? If so, write algebraically the per-worker form of the production function.
b. Repeat part (a) but assume now that the production function is Y = K°3N°-8.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

Question Posted: