Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Don't use pen or paper 1) In an economy called Horbort, there is a labor endowment of 26 units. Good x has the production function

Don't use pen or paper

1) In an economy called Horbort, there is a labor endowment of 26 units. Good x has the production function x = 2(Lx)0.5 and good y has the production function y = 5.5Ly, where Lx and Ly are the labor units allocated to sector x and y, respectively. If labor is divided equally between producing x and y, then the resulting output will be (x,y) =

A: (14.4,65.5)

B: (14.4, 71.5)

C: (7.2,71.5)

D: (7.2,65.5)

2) Consider the economy Horbort from problem 1 above. If all labor is used to produce x, then the most x that can be produced in this economy is ___ , but then the y output in the economy will be ___.

A: 10.2;0

B: 10.2;143

C: 8.8; 0

D: 8.8; 143

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economic Change In Asia Implications For Corporate Strategy And Social Responsibility

Authors: M Bruna Zolin, Bernadette Andreosso O'Callaghan, Jacques Jaussaud

1st Edition

1317286650, 9781317286653

More Books

Students also viewed these Economics questions

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago

Question

State the uses of job description.

Answered: 1 week ago