Answered step by step

Verified Expert Solution

Link Copied!

Question

...

1 Approved Answer

Posted on Jun 13, 2024

Markups open a wedge between factor prices and marginal cost: p = .MgC. When the capital stock is predetermined, the Marginal Cost equals the ratio

Markups open a wedge between factor prices and marginal cost: p = .MgC. When the capital stock is predetermined, the Marginal Cost equals the ratio between the wage w and the marginal product of labor MPL: MgC = w/MPL.

Assuming that the production function is of the Cobb-Douglas type Y= A.KL1-. Please show how the labor share in GDP sL=w.L/p.Y will differ from 1- when the markup is greater than one.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Recommended Textbook for

Macroeconomics

Authors: Olivier J. Blanchard

7th Global Edition

9781292160504

Students also viewed these Economics questions

Question

25. Find the spectral radius of B, where B = D -1 (D A - A), where A is as defined in Prob. 23, and where $$ D A = \begin{bmatrix} 3 & 0 & 0 \\ 0 & 4 & 0 \\ 0 & 0 & 4 \end{bmatrix} D =...

Answered: 1 week ago

Question

★★★★★

The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: a. Accounts receivable at the beginning of the year are $310. Morning Jolt has a 45-day...

Answered: 1 week ago

Question

★★★★★

Answer the following questions. ( 1 0 pts ) Find the value of the postfix expressi the stack operations. 3 4 * * 7 2 1 1 - 5 + ? = ? ( 1 5 pts ) Write the infix expression given belo ( a + b ) * * c...

Answered: 1 week ago

Question

★★★★★

1. What other products or services benefit from the network effect? What strategies can companies pursue to more effectively exploit this phenomenon? 2. SoulCycle was the early leader in studio...

Answered: 1 week ago

Question

★★★★★

What is true about aggregate expenditures? It depends on the rate of savings. It is determined by inventory changes. 1 O At equilibrium it is equal to national income. It always equals national...

Answered: 1 week ago

Question

★★★★★

Indirect materials 600 Repairs 900 Depreciation 5,000 Supervision 4,000 Total $143,000 a. Compute the fixed and variable factory overhead application rates per unit of production. b. Assuming...

Answered: 1 week ago

Question

★★★★★

A construction project for a nuclear power plant will reduce the region's energy dependence on external electricity supplies. The project manager has received support for the project from several...

Answered: 1 week ago

Question

★★★★★

SECTION B-Answer any THREE of these four questions [203=60 marks] QUESTION #3 3D Rigid Body Equilibrium 2 m x 6 m 3 m 3 m D 4 m F2 (350j) N B [20 marks] F = (-800k) N Figure 2 (Courtesy of Prentice...

Answered: 1 week ago

Question

★★★★★

Please Provide your analysis and arguments Case A HaplessHospital employs Dr. Frank Aterror, a surgeon who in the past has sexually assaulted female patients. Suppose that he sees a thousand patients...

Answered: 1 week ago

Question

★★★★★

What is Sales Enablement and how it works ? How to Scale Your Sales Team Quickly? How to do t-test in Excel Simplest way of explaining please

Answered: 1 week ago

Question

★★★★★

2) Your marketing department just undertook a major advertising campaign promoting the quality of your Best Brand Bike Shorts-BBB Shorts. They have provided you with an estim of the success of the...

Answered: 1 week ago

Previous Question Next Question