For this question, I find the MPN= 2K ALPHA * 0.7 N ^ 0.7= W

WHEN I SOLVED THE N= (W/0.7)^ 1.42857?

For i), ii) and iii) I'm not sure if I did it right.

Please, get back to me ASAP. This assignment is due today.

Consider a one-period economy with a. single representative consumer, a sin- gle representative rm and the government. The representative consumer derives utility from consumption 0 and leisure l: u(c,l)=lnc+lnl (1) The rm produces output Y using capital K and labor N according to Y = zK \"N 1\"\" (2) where z is the total factor productivity and a is the Cobb-Douglas parameter. The rm maximizes prots 71' which are then transferred to the representative consumer. The government balances the budget using lump-sum taxes T on the repre- sentative consumer to nance government Spending G. The hourly wage in this economy is w and the censumer has It hours to divide between leisure and labor. (i) Write down the consumer's budget constraint and the rm's prots function. (05 marks) (ii) Assume that w = 10, z = 20, a = 0.3, and K = 1. Calculate the number of hours that the rm would like to hire and the prots of the representative rm. (05 marks) (iii) Assume that government Spending G' is 10, the representative consumer receives the prots that you calculated above and earns hourly wage w = 10. Calculate how many hours of work the representative con- sumer would like to supply in the market. (10 marks) (iv) In the economy described above, (i) the government budget is balanced, (ii) the representative consumer maximizes lifetime utility given the budget constraint and w, and (iii) the rm maximizes prots given the production function and to. Is this a competitive equilibrium? Why or whv nnt? (\"5 marle