Suppose an economy has an increase in labor input of 60 percent, while output has increased by 100 percent. Assuming no change in total factor productivity, calculate the percentage increase in the capital input
(Use the Cobb-Douglas production function Y = A .)
2Y = A . Dividing this by the original production function yields 2 = . Solve for x = 3.37. The capital input has increased by 237 percent.
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If the demand for a country's currency increases, the currency
A) appreciates. B) depreciates. C) stays the same. D) could either appreciate, depreciate, or stay the same.
The most important of the factors that make a firm successful and that can be controlled by the firm's owners and managers are
A) lobbying government to erect or enforce entry barriers in its markets and the marketing of its products as widely as possible. B) the establishment of trademarks for its products and the aggressive defense of those trademarks. C) the differentiation of its products and the production of products at a lower average cost than competing firms. D) the selection of the prices of its products and the selection of the most productive and loyal employees.