Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N both rise by 20%, and A is unchanged, by how much does Y increase?
A) 5%
B) 10%
C) 15%
D) 20%
D
You might also like to view...
The rise in average living standards experienced by most industrialized countries:
A. was more rapid before 1870 than after 1870. B. has been continuous over the course of human history. C. has resulted primarily from an increase in population worldwide. D. has been more rapid since 1950 than before 1950.
Illustrate the effect of the Fed purchasing $50 million worth of mortgage-backed securities on the Fed's balance sheet
What will be an ideal response?
Which of the following will cause a change in the supply of a product?
a. a change in the price of suppliers' inputs b. a change in the price of alternative goods that could be produced with the same resources c. a change in the expected future price of the product d. all of the above
The total revenue curve for a firm is given by TR = 2Q.
A. The firm may be a monopolist or a perfectly competitive firm. B. The firm is definitely not a monopolist. C. The firm is definitely a monopolist. D. One cannot tell from the equation what market form applies.