Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose the production function in the U.S. is Y=5k*0.6L*0.4 Is the production function constant, increasing, or decreasing returns to scale? Show your work. What is
Suppose the production function in the U.S. is
Y=5k*0.6L*0.4
- Is the production function constant, increasing, or decreasing returns to scale? Show your work.
- What is the marginal product of labor? Does the production function have diminishing marginal returns to labor? Show your work.
- Calculate the real wage as a function of L and Y.
- Calculate the share of output which labor receives (your answer should be a number)
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
Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
