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If company A has production function f(k)=3k 1/3; company B has f(k)=6k 1/2 ; suppose new machines can make depreciation rate half of the former
If company A has production function f(k)=3k1/3; company B has f(k)=6k1/2; suppose new machines can make depreciation rate half of the former one and depreciation rate two times of the former one (; ) , find the new steady-state condition of company B, and show the shift on the graph. If company A only takes total consumption as a priority, should it use the new machines? Show the math evidence.
8 = 2 S s' = 2 2s 8 = 2 S s' = 2 2sStep by Step Solution
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