Suppose a country can produce two goods, bread and TVs. Both goods use labor in production....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose a country can produce two goods, bread and TVs. Both goods use labor in production. Capital is specific to TV production and land is specific to bread production. The production functions are specified as follows: 1 YTv = K (LT) 1 YB = T (LB) 3.6. What happens to the real return on capital? Real return on rent land? Show your work. (4 points) 3.7. Suppose that the area of land suitable for use in production of bread has increased. Show that it will cause labor to shift away from TV to bread sector. Hint: LTV show that decreases if T increases. (4 points) LB Suppose a country can produce two goods, bread and TVs. Both goods use labor in production. Capital is specific to TV production and land is specific to bread production. The production functions are specified as follows: 1 YTv = K (LT) 1 YB = T (LB) 3.6. What happens to the real return on capital? Real return on rent land? Show your work. (4 points) 3.7. Suppose that the area of land suitable for use in production of bread has increased. Show that it will cause labor to shift away from TV to bread sector. Hint: LTV show that decreases if T increases. (4 points) LB
Expert Answer:
Posted Date:
Students also viewed these economics questions
-
The 13.3-in. spring is compressed to a 8.0-in. length, where it is released from rest and accelerates the sliding block A. The acceleration has an initial value of 500 ft/sec and then decreases...
-
Required information Skip to question [The following information applies to the questions displayed below.] Lauder Company manufactures and distributes various fixtures used primarily in new building...
-
a . You are the investment manager for Classic Assets Investment Company s mutual fund and you have US$ 9 0 0 , 0 0 0 . 0 0 to invest in Blackrock Group Ltd . , a stock selling for US$ 7 0 per share....
-
Find all values of 0, if 0 is in the interval [0, 360) and has the given function value. cot 0= -1 0= (Type your answer in degrees. Use a comma to separate answers as needed.)
-
The wave speed in a liquid is given by v = B/p, where B is the bulk modulus of the liquid and is its density. Show that this equation is dimensionally correct. What about v = Y/pfor a solid? (Y is...
-
What is the business value of blockchain? What six areas of business value have been identified in this chapter?
-
Why is the business entity assumption important?
-
Earths Best Company has sales of $200,000, a net income of $15,000, and the following balance sheet: a. The companys new owner thinks that inventories are excessive and can be lowered to the point...
-
Question 20 What conclusion can we draw from this study? There is not enough statistical evidence to draw a conclusion. The prices are too high. The manager's prices are lower than average. The...
-
Question Five Amco Pty Ltd just paid a dividend of $0.20 per share. Looking forward, this dividend is expected to grow at 15% per annum for three years, then at 10% per annum for the next three...
-
Candace always tried to do the right thing but did not know what to do in this dilemma. She knew someone would get hurt. All because of an overzealous supervisor, she thought sadly. Two years ago...
-
CrudeOil, a subsidiary of a major energy multinational that manufactures oil drilling parts around the world, experienced a lag in sales. The board of directors brought in a new manager to revamp the...
-
Ahmed was an Arizona University student and spent 20 hours each week working at the university library. He liked the library because it was quiet and he could study some of the time. One interesting...
-
Steven, a junior at Northeast State, just started working part-time at a local fast food restaurant chain. Although not his dream job, it paid for tuition and books, and the restaurant gave him the...
-
Daniel just graduated from Michigan University and landed a job as a copywriter at Young, Olsen, Lindle, and Olson (YOLO) Advertising assigned to one of the subsidiary accounts of Delicious Uber...
-
A high rise building is being designed at the site. A detailed site investigation reveals that the site consists of 18 m of cohesion less soil over 10 m of soft clay overlying a hard rock. The water...
-
On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34...
-
The following transactions occurred during the month of January, 20X5: {Required} Prepare the journal entries for January, 20X5. 1. Raw materials costing $40,000 were purchased on account. 2. Raw...
-
The president of Beth Corporation, which manufactures tape decks and sells them to producers of sound reproduction systems, anticipates a \(10 \%\) wage increase on January 1 of next year to the...
-
Breakeven Point and Sales Needed for a Desired Profit All-Day Candy Company is a wholesale distributor of candy. The company services grocery, convenience and drug stores in a large metropolitan...
Study smarter with the SolutionInn App