Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. An industry has an investment of $ 100,000 of capital (PK K = $ 100,000). The profit is $ 10,000/year. Determine the maximum rate
2. An industry has an investment of $ 100,000 of capital (PK K = $ 100,000). The profit is $ 10,000/year. Determine the maximum rate of interest possible, before the amount of capital will decrease (assuming the investment function of the form :). 3. The production function for a particular industry has $ 9,000, - unit of capital. The unit price of production was $ 5 and the wage rate was $ 100 / male / day. How much labor is needed to obtain maximum profit. Graph the profit and output. (Ans. Q = 3600 / day, L = 90 men). 4. In the previous example, only 2000 items / day are sold. How to adjust the industry stock from capital in order with maximum profit. Determine the profit the industry will produce. 5. Show that the Cobb Douglas production function is a decreasing increment ratio on the substitution and then show that the elasticity of the substitution of this function is equal to negative 1 (-1). 2. An industry has an investment of $ 100,000 of capital (PK K = $ 100,000). The profit is $ 10,000/year. Determine the maximum rate of interest possible, before the amount of capital will decrease (assuming the investment function of the form :). 3. The production function for a particular industry has $ 9,000, - unit of capital. The unit price of production was $ 5 and the wage rate was $ 100 / male / day. How much labor is needed to obtain maximum profit. Graph the profit and output. (Ans. Q = 3600 / day, L = 90 men). 4. In the previous example, only 2000 items / day are sold. How to adjust the industry stock from capital in order with maximum profit. Determine the profit the industry will produce. 5. Show that the Cobb Douglas production function is a decreasing increment ratio on the substitution and then show that the elasticity of the substitution of this function is equal to negative 1 (-1)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started