In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 20 percent, and a production function of . What will its level of capital stock per labor hour be next year?
A) 920 units
B) 720 units
C) 900 units
D) 740 units

Question

In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 20 percent, and a production function of . What will its level of capital stock per labor  hour be next year?
A) 920 units 
B) 720 units 
C) 900 units 
D) 740 units

Quizplus · Accepted Answer

The Answer of In a small country each labor hour has capital stock equal to 900 units. This year it produced 20 units of new capital goods, with a depreciation rate of 20 percent, and a production function of . What will its level of capital stock per labor  hour be next year?
A) 920 units 
B) 720 units 
C) 900 units 
D) 740 units

In a Small Country Each Labor Hour Has Capital Stock