Consider the one-period closed economy that we've discussed in class, and assume the following information is...

 

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Consider the one-period closed economy that we've discussed in class, and assume the following information is given about the representative consumer and representative firm: • The representative consumer's preferences over a consumption bundle (C, l) is represented by the following log utility function: U (C, l) = ln (C) + 0.5 · In (l) . - 5 hours of time that she can The representative consumer has a total of h allocate between leisure and labour. - • The representative firm own K 2 units of physical capital, and hires labour Nd to produce output according to the following production technology: Y=0.5(K)0.3. (Nd) ⁰.7. Firm's profits, denoted by π go to the consumer as divident income. • There is no government in this economy. Compute the competitive equilibrium wage rate in this economy. Consider the one-period closed economy that we've discussed in class, and assume the following information is given about the representative consumer and representative firm: • The representative consumer's preferences over a consumption bundle (C, l) is represented by the following log utility function: U (C, l) = ln (C) + 0.5 · In (l) . - 5 hours of time that she can The representative consumer has a total of h allocate between leisure and labour. - • The representative firm own K 2 units of physical capital, and hires labour Nd to produce output according to the following production technology: Y=0.5(K)0.3. (Nd) ⁰.7. Firm's profits, denoted by π go to the consumer as divident income. • There is no government in this economy. Compute the competitive equilibrium wage rate in this economy.