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katen-ka-za [31]
3 years ago
14

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%

. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. In three years' time, what is the level of physical capital per worker in this economy?
Business
1 answer:
tatyana61 [14]3 years ago
4 0

Answer:

266,2 units of capital per worker

Explanation:

The capital growth as stated is compound growth. Since technology and human capital are constant, there is not expected changed in productivity factors relationship, so the formula for compound growth, in this case, is: capital per worker in 3 years' time = capital per worker * (1+ annual rate growth) ^ 3. Computing numbers would be: capital per worker in 3 years' time = 200*(1+10)^3= 266,2

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"Bronson Manufacturing is planning to issue $12 million in bonds. Based on a poll of potential investors, they have the highest
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C.eight-year bond with 5.5% annual interest rate

Explanation:

The computation of the total options under each option is as follows:

As we assume the par value be $1,000

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For Option  B      

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For Option D

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= 6% × $1,000 × 6 years

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6 0
2 years ago
Dr. wahls explains at great length the importance of diet to mitochondrial function, but if you had to simplify her message to f
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5 0
3 years ago
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream
NeTakaya

Answer:

d. Charities

Explanation:

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7 0
2 years ago
Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a
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Answer:

Cash flows from investing activities is $653,200.

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8 0
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