1- Suppose we have production function F(k,n) = Akan where k denotes the capital stock,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1- Suppose we have production function F(k,n) = Akan ¹ where k denotes the capital stock, n denotes the number of hours worked, a = .25, and A = 100, (a) why do we assume k ≥ 0? (b) Show that F (k,n) > 0 for k> 0 and n > 0? (c) Show that F > 0 for k> 0 and n > 0? (d) Show that Fkk <0 for k> 0 and n > 0? (e) Show this function satisfies the Inada conditions? 1- Suppose we have production function F(k,n) = Akan ¹ where k denotes the capital stock, n denotes the number of hours worked, a = .25, and A = 100, (a) why do we assume k ≥ 0? (b) Show that F (k,n) > 0 for k> 0 and n > 0? (c) Show that F > 0 for k> 0 and n > 0? (d) Show that Fkk <0 for k> 0 and n > 0? (e) Show this function satisfies the Inada conditions?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The modern dynamic business environment has been described as a buyers market in which companies must react to the rapidly changing characteristics of the market and the needs of customers. Many...
-
An assignment in your accounting course requires that you prepare an analysis of two retail companies. Required: Which ratios would you find useful in analyzing inventory? Explain why the ratios are...
-
Management accounting practice has traditionally focused on techniques to assist organizational decision-making and cost control. In concentrating on the internal environment, the management...
-
How much taxes do Employees and Employers pay in F.I.C.A? a) Employees and Employers paid 1.45% in taxes. b) Employees and Employers paid 7.65% in taxes. c) Employers and Employees paid 2.7% in...
-
The water in a tank is pressurized by air, and the pressure is measured by a multifluid manometer as shown in Fig. P1-50. Determine the gage pressure of air in the tank if h1 = 0.2 m, h2 = 0.3 m, and...
-
The field due to an isotropic (or omnidirectional) antenna is given by where a is a constant. Determine the radiation resistance of the antenna. = al r
-
A square aluminum plate \(5 \mathrm{~mm}\) thick and \(150 \mathrm{~mm}\) on a side is heated while vertically suspended in quiescent air at \(75^{\circ} \mathrm{C}\). Determine the average heat...
-
The accounts in the ledger of Roshek Delivery Service contain the following balances on July 31, 2012. Instructions(a) Prepare a trial balance with the accounts arranged as illustrated in the...
-
1. Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows: Units Sold Price Total Variable Costs Fixed Costs 120,000 $48 $3,000,000 $1,000,000...
-
A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is $12 per labour hour and each unit of production should take four labour hours. In a recent period...
-
For the following reaction: Draw the linear regioisomer for the reaction above. What controls regioselectivity? Why does the diastereocontrol vary when preparing all four stereoisomers? Ph OH OCOMe...
-
What red flag symptoms might revenue recognition create and how might one best discover a revenue recognition fraud?
-
Most genes encode polypeptides, which are functional units of proteins. Explain how the structure and function of proteins produce an organisms traits.
-
Describe the significance of nonparental combinations of traits with regard to the law of independent assortment. In other words, explain how the appearance of nonparental combinations refutes the...
-
The HR (human resources) department has requested some assistance. They would like to identify all employees who are not withholding the maximum savings amount for the 401K retirement plan of 6% to...
-
Continuing to focus on evidence associated with the act, concealment, and conversion, use the evidentiary material to continue the examination. In addition, as the examiner also start to think of...
-
A taxpayer operates some rental units, both commercial and residential, for a total of $175,000 in gross rental income during the year. They have the following rental expenses, ignoring depreciation:...
-
Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the...
-
When discussing the statements sent to you by the federal government that predict your future Social Security payments, we said, Dont be surprised if those predictions turn out to be a little bit...
-
Suppose that we tax CEO salaries very highly, as some are proposing in the United States. What is your prediction about CEO perks, such as jets and in-house chefs?
-
Lets look at the Federal Reserves dilemma when theres a positive shock to the long-run aggregate supply curve. Well consider the reverse of Figures 35.3 and 35.4. a. In the following figure,...
-
If the sample standard deviations instead of the sample ranges are used to estimate \(\sigma\), the control limits for the resulting \(\bar{x}\) chart are given by \(\overline{\bar{x}} \pm A_{1}...
-
In order to establish control charts for an extraction job, 30 samples of five measurements of the extracted ores are taken, and the results are \(\overline{\bar{x}}=25.96\) tons and \(\bar{s}=1.5\)...
-
Suppose that with the samples of Exercise 15.6, it is desired to establish control also over the variability of the process. Using the method of Exercise 15.5 and the values of \(\overline{\bar{x}}\)...
Study smarter with the SolutionInn App