Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 3, Problem 3RQ
To determine
The concept of the marginal product of capital is to be determined along with its graphical presentation.
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d. Calculate the marginal product of capital MPK.
e. Calculate the marginal product of labor (MPL).
compute the marginal product of capital (MPK) and the marginal product of capital (MPL) of a. Q=3 K0.4+4 L0.3
What is the difference between the rental price and the purchase price of capital?
Chapter 3 Solutions
Macroeconomics
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 1NPCh. 3 - Prob. 2NPCh. 3 - Prob. 3NPCh. 3 - Prob. 4NPCh. 3 - Prob. 5NPCh. 3 - Prob. 6NPCh. 3 - Prob. 7NPCh. 3 - Prob. 8NPCh. 3 - Prob. 9NPCh. 3 - Prob. 10NPCh. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 6APCh. 3 - Prob. 7AP
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- compute the marginal product of capital (MPK) and the marginal product of capital (MPL) of b. Q=K2/ 5L3 /5arrow_forwardQuestion2 Imagine you work for a firm that only utilizes labor and capital as inputs and has a CES production function: q = f(L, K) = [aLº + BK²] 2/2 Where a = B=0.5.y = 1.p = 2. a. What is the MPL ? What does this mean economically? b. What is the MPK? What does this mean economically? c. What is the MRTS? What does this mean economically? d. Does this CES function have constant, increasing, or decreasing returns to scale?arrow_forward8. Chapter ma2pe09r, Section .02, Problem 011 (ID: 011.02.MANK09) In the circular-flow diagram, which of the following is not a factor of production? Oa. Land Ob. Capital Oc. Money Od. Laborarrow_forward
- What are the two components of the user cost of capital? Use an example capital good to explain.arrow_forwardPizzas are produced using capital as a specific factor and labor as a mobile factor. The graph below shows the marginal product of labor curve: MPL, Real wage 50 MPL 20 120 200 Suppose the real wage is 20. Calculate: capital owners' total real rent, workers' total real wage bill, and total output in the pizza industry.arrow_forwardSuppose P = $144, MPL = 39, and APL = 26, MPK = 72, and APK = 45. What is the value marginal product of labor (AKA marginal revenue product of labor)? $ What is the value marginal product of capital (AKA marginal revenue product of caplital? $arrow_forward
- whats the difference between marginal physical product (MPP) and the marginal rate of subsitution (MRS)?arrow_forwardAn economy has the following Cobb-Douglas production function: ?=100?^(1/3)?^(2/3) . The economy has 125 units of capital and 64 units of labor. d. Calculate the marginal product of capital MPK. e. Calculate the marginal product of labor (MPL).arrow_forwardDraw an example production function in terms of output and capital.GIVE 2 specific properties which define its shape; explain these usingthe definition and properties of MPK.arrow_forward
- You observe that MPL > APL and MPL is decreasing but positive as more labor input is used. Output must be rate and average productivity 'APL' must be at increasing decreasingarrow_forwardWhy does the general public often refer to the cost-of-living index?arrow_forward▪You have fulfilled your dream by buying a McDonald’s franchise. You start hiring employees and come to realize that the first employees you hired were extremely productive, but every additional person you hired seemed to be less productive. ▪Why does that occur? Are the last people you hired just lazy? ▪The capital is fixed in the short run, but you can change your labor in the short run. ▪You decide to calculate the marginal product and the average product of your business.arrow_forward
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