Answer:
Part a: According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.
Part b: The per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.
Explanation:
<em>Part a:</em>
According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.
In Solow model the GDP per capita is defined as
Also the steady state path is given as
As all other parameters are same thus the country with higher value of s will have a higher per capita GDP.
According to the Solow model, higher saving rate means larger capital stock and high level of output at the steady state.
Higher saving rate leads to faster growth in Solow model. So there is higher per capita real GDP for the country that has higher saving rate.
<em>Part b:</em>
In Simple Solow Model, the steady state per Capita GDP, 
is the function of the steady state per capita capital stock given as 
Now this indicates that
where f is an increasing concave function i.e. f'>0 and f''<0
Thus the sole dependence of per capita GDP is on per capita capital stock.
Thus the per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.
Hard dm me and I know what it is for sure
Answer:
Quantitatively, Harlan Bikes is justified in deciding to close the department, but there are other qualitative factors that need to be considered which may result in the company loosing much more that they can save if the department is closed, such as for example a decrease in employee morale, a negative signalling effect to other stakeholders, a drop in sales in related products etc.
Explanation:
A decrease in employee morale can result especially if workers in other departments are no-longer sure about their future in the company, resulting from fears of their departments being closed. This can negatively affect productivity resulting in lower profits in other department.
A negative signalling effect means that other stakeholders such as investors and creditors may start questioning managements ability to profitably run the business, and the company will be perceived as more risky. Cost of debt and cost of equity capital for example, may go up, due to this higher perceived risk, and which may reduce the number of positive net present value projects that the company can undertake due to an increase in cost of capital.
If the company carries related products in other departments, it may also see a drop in sales in those sales, which will effectively reduced the savings that are estimated to be gained from closing the division.
If you had set the price of $17 per book among your friends
in a trade, the likely result would be that there will be a presence of surplus
books in which if the required is met, left overs will likely be produced
because of supply over the demand.
