Question
If the depreciation rate = .1*(capacity utilization rate)^2 and R/P = .05 (Production function Y=8*K^.33*L^.66) 1. What is the equation for the real rate of
If the depreciation rate = .1*(capacity utilization rate)^2 and R/P = .05 (Production function Y=8*K^.33*L^.66)
1. What is the equation for the real rate of return on capital?
2.What will be the optimal capacity utilization rate?
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
Economics for Environmental Studies A Strategic Guide to Micro and Macroeconomics
Authors: Alfred Endres, Volker Radke
1st edition
364231192X, 3642311925, 9783662548264, 3662548267, 978-3642311925
