Question: 1)With reference to the equation derived from the Cobb-Douglas Production function, explain how the following affect the relative price of investment: a.An increase in technology

1)With reference to the equation derived from the Cobb-Douglas Production function, explain how the following affect the relative price of investment:

a.An increase in technology

b.A decrease in technology

c.A disaster reducing the amount of capital stock

d.An increase in the labour force.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

The Fashion Rack is a retail merchandising business that sells brand-name clothing at discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 20X1. This...

1)With reference to the equation derived from the Cobb-Douglas Production function, explain how the following affect the relative price of investment: a.An increase in technology b.A decrease in...

1.Which of the following is possible with international trade? I. Countries that engage in trade can consume at a point outside their respective production possibilities curve. II. Global production...

Part A. Production Problem 1. Consider the Cobb-Douglas production function f(x,y) = 12x0.4y0.8. (A) Find the intensities (? and 1 ? ?) of the two factors of production. Does this firm have...

Can you please help me answer two questions based on the readings below. 1 How would you contrast the mainstream economics view of consumer behavior in 9.3, with the demand curve in general, and also...

Attempt the following please; Univariate unconstrained maximization. (10 points) Consider the following maximization problem: max x f (x; x0) = exp((x x0)2) 1. Write down the first order conditions...

Answer all of the following its macro,, please explain weel 1. An exchange economy has two dates t = 0, 1 and two states of nature s = 1, 2 which will be revealed at date 1. Unlike the model in...

Micros X swatch X Search X sWatc X Q course X Course X C **ON X D2L Assign X PDE Assign X PDE 1402 / X D2L Ch 6 5 X chegg X C 1. A fil X + X C File |...

Answer the following 1. Solow model in continuous time. Consider the Solow model in continuous time with pro- duction function y = f(k) satisfying the usual properties, constant savings rate s,...

swam Searcl' sWal: course i Home mot. Home .: A5 , 1402.. ml Grade '5 Asslgl create Googl ' Inbox ' Serum + (D File C:/ Users/ nkemo/ Downloads/Ass ign m ent%20|*5eclio [1%206...

Use mesh analysis to find Vo(t),t>0 in the network shown in fig.

Versailles Co., a womens clothing store, purchased $18,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Versailles Co. returned $3,000 of the merchandise, receiving a...

0 8 c o s 8 ( 4 x ) s i n ( 4 x ) d x =

7. The horizontal stick of length, L, shown in the figure is uniform and weighs 200 N. Calculate the tensions, T1 and T2, in the ropes supporting it when a weight (W 500 N) is suspended as shown. T1...

The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020. The following statement has been provided: Sales $895,000 Cost of...

P incurred incorporation costs of $10,000 to incorporate a new corporation, effective January 1 of the current year, and chose December 31 as its first-year end. What is the maximum amount that can...

OCH CHO 76 and are 1) Positional isomers 2) Functional isomers 3) Chain isomers 4) Ring chain isomers How many cyclic isomers of C,H,, are possible? 1) 2 2) 3 3) 4 4) 5

Steam with quality of 0.85 is contained in a rigid vessel at a pressure of 250 kPa. Heat is then added until the temperature reaches 400 C. Determine the final pressure.

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

2. Now change the performance so that you play out the dream in your inner the-atre. Apply colours to the images you envision. Give some pictures a stronger colour than others and vice versa. Also...

1. Imagine that you have already achieved a dream or a goal you have set for yourself. Both the goal and the dream correspond to your basic values. Try to visualize this dream or goal. What do you...

4. What means will you use to achieve these values?