, 08.11.2019 05:31 Looneytunness1806

# Suppose the production function in medieval europe is y 5 k 0.5l0.5, where k is the amount of land and l is the amount of labor. the economy begins with 100 units of land and 100 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. a. how much output does the economy produce? b. what are the wage and the rental price of land? c. what share of output does labor receive?

An economy has a cobb–douglas production function: y = kα(le)1-α. (for a review of the cobb–douglas production function, see chapter 3.) the economy has a capital share of a quarter, a saving rate of 48 percent, a depreciation rate of 2 percent, a rate of population growth of 1 percent, and a rate of labor-augmenting technological change of 3 percent. it is in steady state. a. at what rates do total output, output per worker, and output per effective worker grow? total output grows at %. output per worker grows at %.
What is the most important factor that affects the value of a company? a) cash flow b) earnings c) supply and demand d) number of employees