Question
Suppose the production function in medieval Europe is = .. , where Y is the amount of food produced, is the amount of land and
Suppose the production function in medieval Europe is = .., where Y is the amount of food produced, is the amount of land and is the number of workers. The economy begins with 32 units of land and 32 workers. Assume a neoclassical competitive economy where there is no mark-up, no unemployment, and where landlords and workers are paid their marginal products. Find a numerical answer to each of the following.
- (a)How much food does the economy produce?
- (b)What are the wage and the rental price of land?
- (c)What share of output do the workers receive?The landlords?
- (d)If a plague kills half the population, what is the new output level?
- (e)What is the new wage and what is the new rental price of land?
- (f)What share of output does labour receive now?
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Auditing A Practical Approach with Data Analytics
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
1st edition
1119401747, 978-1119401742
