Suppose that consumers are all risk neutral and so they do not purchase health insurance.
September 3, 2020
Suppose there’s a country where the velocity of money is constant. Real GDP grows by 6 percent per year, the money stock grows by 10 percent per…
September 3, 2020

 Suppose the following production function: Q = 10 (K)1/3 (L)2/3 subject to; W *L + r * K = Cost.

a.     Suppose that K the amount of capital is K =8. If this company hires 64 workers (L), calculate the value of Q.

b.    Determine if this production function exhibits constant, increasing or decreasing returns to scale.

c.     The marginal Products are the following: MPK = and MPL = Please derive the marginal rate of technical substitution

KM
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