economic - emergency

posted by .

Question concerning production function - Cobb douglas. Given is:
y=(0,2K-1 + 0,8L-1)-1
If wk = wL =1, what will k and L be?
Now suppose again:
y=(0,2k-1 + 0,8L-1)-1 and
z=K1/3*L2/3. Is product y or z always more demanding to capitals (in case of labour)? if not, find where % of wL/wk is changing in price.
Notes: -1 after K and L is square and also -1 after ()and 1/3 and 2/3

Im sorry, but I don't understand your notation. You say -1 means "square". However, what does 0,2K-1 mean?
Is it "2 times (K-squared)"?

If so, your first equation becomes y=[2*(K)^2 + 8*(L)^2]^2. Here, again, I'm confused. With the outer squared term, you get one beast of a production function, requiring more calculas than I can remember. Without the outer squared term you get a production function that is, unusual but not unheard of in teaching economics, and mathmatically tractable. (Or it could be that I am missing something).

BTW, the traditional cobb-douglas is your z-equation.

Sorry my english but its root not squared, sorry for this problem but I'm still have problem with this math

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. eceonomic

    The isoquant line is described on this forms: a)y=[x1/2 + x1/2]2 (1/2 should be mark as upper quartile) b)y=[x12 + x22]1/2 (x1 as lower quartile and 2 upper for first x and same for x22). The question is how to draw the isoquent line …
  2. Macroeconomics

    Economists have found that a good approximation of value added production fucntion is given by Y=TFP*(K^alpha)*(L^-alpha) TFP is Total factor Productivity K is capital stock L is quantity of labor used alpha is a paramater around 1/3. …
  3. Managerial Economics

    I'm not sure I have the formulas correct for this problem and I do not know what the labor hours are.... Dimex Company, a sheet-metal mfg., estimates its long run production function is: 3 3 2 2 Q = -0.015625K L + 10K L where Q is …
  4. Economics

    Consider the production function Q = 20K 1/2 L 1/2. The firm operates in the short run with 100 units of capital. a. The firm’s short-run production function is Q = __________. c. The average product of labor function is AP = __________. …
  5. Microeconomics: Cost of Production

    Please help me with this question! QUESTION: Heaven Sub, a subway shop, has the following marginal product curve points for its hourly product: (0.5, 13) (1.5, 17) (2.5, 15) (3.5, 11) (4.5, 9) i) When labour increases from 2 to 3 workers, …
  6. Economics Help pls

    Suppose you are given the following production function: , where y is output and K is capital. y= 60K + 20.3K2- K3 1.1 what is a production function, what is the real work application of such, and where would you source the data to …
  7. calculus word problem

    A company has a Cobb-Douglas production function f(x,y)= 20x^0.33y0.67 where x is the utilization of labor and y is the utilization of capital. Determine the number of units of product produced when 1728 units of labor and 27,000 units …
  8. Econometric -SAS

    I am having trouble figuring out the correct code. I am trying to do an unrestricted and restricted model of a Cobb-Douglas Production Model. lnQ=B1 + B2 lnL + B3 lnK + e This is my code data cobb; infile 'cobb'; input q l k; proc …
  9. Econoics

    Cobb-Douglas Production function Y=60K^1/3 L^2/3 If K=64 L=8 calculate MPL What is the equilibrium real wage in the economy
  10. Economics

    A Cobb-Douglas production function for new company is given by  f(x,y)  50x 2 5 y 3 5 where x represents the units of labor and y represents the units of capital. Suppose units of Labor and capital cost $100 …

More Similar Questions