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Alexeev081 [22]
2 years ago
15

Alter the Solow growth model so that the production technology is given by Y = zK, where Y is output, K is capital, and z is tot

al factor productivity. Thus, output is produced only with capital.
a. Show that it is possible for income per person to grow indefinitely.
c. Also show that an increase in the savings rate increases the growth rate in per capita income.
c. From parts (a) and (b), what are the differences between this model and the basic Solow growth model? Account for these differences and discuss.

Business
1 answer:
Veronika [31]2 years ago
4 0

Answer:

Explanation:

kindly check the below for this explanation

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A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q
Karolina [17]

Answer:

50

Explanation:

According to the question, The computation of the quantity produce is shown below:

Here we use the differentiation LRAC to zero

\frac{\partial LRATC}{\partial Q}=-10+0.2Q=0\\\\ 0.2Q=10\\\\ Q=50

From above calculation it can be concluded that the each firm would be produced the quantity of long run equilibrium for 50

Hence, the first option is correct

5 0
2 years ago
A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been
tekilochka [14]

Answer:

The company paid $278,031

Explanation:

Giving the following information:

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been 3.7%.

<u>To calculate the past value of the land, we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= present value (20 years ago)

n= 20

FV= 575,000

i= 0.037

PV= 575,000 / (1.037^20)

PV= $278,031

3 0
3 years ago
Ryan estimates that he drove approximately 2,260 miles on business trips, but he can only provide written documentation of the b
tester [92]

Answer: $1,355.41

Explanation:

Business expense deductible:

= Adjusted Cost of gasoline + Depreciation

As Ryan can only provide documentation for 1,300 miles, this is what the deductible will be based on:

= (Cost of gasoline * Documented miles for business / Estimated miles for business) + (Depreciation * Documented miles for business / Total miles travelled)

= (1,920 * 1,300 / 2,260) + (3,900 * 1,300 / 20,200)

= $1,355.41

3 0
3 years ago
Periodic review systems are best suited for the C category of items under the ABC classification scheme.
sveticcg [70]

Answer:

a. True

Explanation:

ABC classification scheme refers to item analysis that is based upon the principle that there are many less critical items and few critical items by dividing on-hand inventory into three classes which is generally based upon annual dollar volume as follows:

"A items" have very tight control and accurate records

"B items" does not have a tight control and good records

"C items" have minimal records, periodic review, and and characterized by simple controls.

From the above explanation, it is therefore <u>true</u> that periodic review systems are best suited for the C category of items under the ABC classification scheme.

7 0
3 years ago
M1 and M2 are two definitions of the money supply.
Alex787 [66]

Answer: Please refer to Explanation

Explanation:

M1 is the narrowest definition of money supply. It refers to the most liquid or instruments and includes actual currency as well as money in checking accounts.

M2 is the next type of of money. It includes EVERYTHING in M1 and then also includes savings deposits, time deposits, and money market funds.

Now,

Classifying the above will go as,

Gold - Neither M1 or M2

Traveler's check - M1 and M2

Balance in savings accounts - M2 only

Money market account balance - M2 only

Credit cards - Neither M1 or M2

Common stock - Neither M1 or M2

Certificates of deposit - M2 only

Currency - M1 and M2

Balance in Checking accounts - M1 and M2

It is worthy of note that there is no M1 only. This is because as stated in the definition, all M1s are in M2.

5 0
3 years ago
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