1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
antiseptic1488 [7]
3 years ago
7

If the Japanese production function is Cobb–Douglas with capital share 0.3, output growth is 3 percent per year, depreciation is

4 percent per year, and the capital–output ratio is 2.5, the saving rate that is consistent with steady-state growth is:________.
Business
1 answer:
miss Akunina [59]3 years ago
6 0

Answer: The saving rate is 0.30

Explanation:

The Golden Rule savings rate is referred to as the rate of savings which maximizes steady state level or growth of consumption.

Let k be the capital/labour ratio (i.e., capital per capita), y be the resulting per capita output ( y = f(k) ), and s be the savings rate. The steady state is referred to as a situation in which per capita output is unchanging, which implies that k be constant. This requires that the amount of saved output be exactly what is needed to one quip any additional workers and two replace any worn out capital.

In a steady state, therefore: sf(k)=(n+d)k

Growth rate of output =3%

Depreciation rate= 4%

Capital output ratio is (K/Y)

= 2.5

Begin the steady state condition:

S= ( σ + n + g) (k/Y)

S= (0.03+0.04) (2.5)

S= 0.175

Golden rule steady state

MPK= (0.03+0.04)= 0.07

Capital output ratio=

K/Y= Capital share / MPK

K/Y= 0.3/0.07

K/Y= 4.29

In the golden state, the capital output ratio is equal to 4.29 in comparison to the current capital ratio 2.5.

The saving rate consistent with the steady growth rate

S= ( σ + n + g) (k/Y)

S= (0.03 +0.04) (4.29)

S= 0.30

The saving rate that is consistent with the steady growth rate is 0.30

You might be interested in
Mack reynolds, the manager of the special products division, must decide whether to bid or not, and if intermodular semiconducto
REY [17]
"from" (and any subsequent words) was ignored because we limit queries to 32 words.
4 0
3 years ago
An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 un
beks73 [17]

Answer:

$0.1  

Explanation:

The per unit cost of a production is the sum of variable cost and fixed cost divided by the total number of units produced. The per unit cost is given by the formula:

Per unit cost = (Variable cost + Fixed cost) / Number of units produced

Variable cost = Cost of raw material = Units of raw material × Cost of each unit of raw material = 5 units × $4/unit = $20

Fixed cost = Cost of labor + Capital =(Units of capital × Cost of each unit of capital) + (Units of labor × Cost of each unit of labor)  = (8 units × $3/unit) + (2 units × $10/unit) = $24 + $20 = $44

Variable cost + Fixed cost = $20 + $44 = $64

Per-unit cost of production = (Variable cost + Fixed cost) / Total output = $64 / 640 = $0.1  

3 0
3 years ago
"The net present value of the investment, excluding the annual cash inflow, is −$403,414. To the nearest whole dollar how large
nadezda [96]

Answer: c. $81,202

Explanation:

The inflow will be annual and constant which makes it an annuity. Given the discount rate of 12% and a useful life of 8 years, the present value interest discount factor based on the table is = 4.968.

Option 1 present value

= 48,410 * 4.968

= $240,500.88‬

Option 2 present value

= 50,427 * 4.968

= $250,521.34

Option 3 present value

= 81,202 * 4.968

= $403,412

Option 3 is the closest option with the difference being down to rounding errors. The annual inflow would have to be $81,202 to make the investment in the equipment financially attractive.

4 0
3 years ago
Given the following production function for Tight Jeans Corporation, calculate the marginal physical product and the value of th
kicyunya [14]

Answer:

labor input      pairs of jeans      marginal physical     value of marginal

                       per day                product                     physical product

0                          0                          0                               0

1                         10                         10                            $300

2                         36                         26                            $780

3                         56                         20                            $600

4                         68                         12                            $360

5                         74                          6                            $180

6                         76                          2                             $60

7                         76                          0                                0

8                         74                         -2                            -$60

The marginal revenue product is the value of marginal physical product, and you calculate it by multiplying marginal physical product times the unit price of the pair of jeans.

5 0
3 years ago
WHAT IS THE DIFFERENT BETWEEN BUSINESS MANAGEMENT AND BUSINESS ADMINISTRATION
myrzilka [38]

Answer:

A business management degree focuses more on planning and organizing, whereas a degree in business administration provides a broad background and then allows the student to focus on a specialized area of business

Explanation:

Business administration (also known as business management) is the administration of a business. It includes all aspects of overseeing and supervising business operations. From the point of view of management and leadership, it also covers fields that include accounting, finance, project management and marketing.

3 0
3 years ago
Other questions:
  • If you are interested in general management, the best career cluster for you might be: A: Education and Training. B: Architectur
    10·2 answers
  • Read "electricity and the environment.â what is one major benefit that came from the clean air act
    12·1 answer
  • Anka Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. An
    5·1 answer
  • The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are add
    7·1 answer
  • Japan and russia disagree over ownership of which islands?
    13·1 answer
  • The Retained earnings account has a credit balance of $34,000 before closing entries are made. If total revenues for the period
    14·2 answers
  • Current Forecast is 2500 units, current 1st shift capacity is 1300 units. Market growth rate is 10%. How much capacity do you ne
    7·1 answer
  • How can higher data prices negatively affect other producers of goods and services​
    10·1 answer
  • I am the head of a major company and it has been brought to my attention that
    15·1 answer
  • According to Daniel Kahneman and Amon Tversky, a $1 loss pains us ________ times more than a $1 gain helps us.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!