Suppose that the production function for the economy is Y = AK⁰.⁵ᴸ⁰.⁵.If the capital stock = 40 000,the quantity of labour = 10 000,and the efficiency index = 3,the equilibrium real rental price of capital is
A) $0.33.
B) $0.75.
C) $1.00.
D) $2.22.
Correct Answer:
Verified
Q21: Suppose that the production function for the
Q22: Suppose that the production function for the
Q23: A firm that wishes to maximize profits
Q24: Figure 7.1 Q25: Suppose that the production function is Y Q27: Suppose that the production function for the Q28: A firm that wishes to maximize profits Q29: Suppose that the production function for the Q30: Figure 7.1 Q31: Suppose that the production function for an
![]()
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents