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2 years ago

explain two ways in which the government contributes to the efficient operation of the economic system.

1 answer:

3 0

Government enhances the operation of the market system by providing an appropriate legal foundation and promoting competition. Transfer payments, direct market intervention, and taxation are among the ways in which government can lessen income inequality.

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The cob Douglas production function is given by Q(K,L)=AK^1.4*L^1.6

Alexeev081 [22]

Part a) The Cob Douglas production function is given as:

$Q(K,L)=AK^{1.4} L^ {1.6 } .$

To show that this function is homogeneous with degree 3, we introduce be a parameter, t.

$Q(tK,tL)=A(tK)^{1.4} (tL)^ {1.6 } .$

Using properties of exponents, we on tinder:

$Q(tK,tL)=At^{1.4}K^{1.4} t^ {1.6 }L^ {1.6 } .$

This implies that:

$Q(tK,tL)=t^{1.4} \times t^ {1.6 }(AK^{1.4} L^ {1.6 } )$

$Q(tK,tL)=t^{1.4 + 1.6}(AK^{1.4} L^ {1.6 } )$

Simplify the exponent of t to get;

$Q(tK,tL)=t^{3}(AK^{1.4} L^ {1.6 } )$

Hence the function is homogeneous with degree, 3

Part b) To verify Euler's Theorem, we must show that:

$K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L}=3AK^{1.4}L^{1.6}$

Verifying from the left:

$K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =K(1.4AK^{0.4} L^{1.6}) + L(1.6AK^{1.4} L^{0.6})$

$K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =1.4(AK^{1.4} L^{1.6}) + 1.6(AK^{1.4} L^{1.6})$

$K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =(1.4 + 1.6)(AK^{1.4} L^{1.6})$

$K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =3(AK^{1.4} L^{1.6})$

Q•E•D

8 0

3 years ago

Stock R has a beta of 1.8, Stock S has a beta of 0.75, the expected rate of return on an average stock is 9%, and the risk-free

PIT_PIT [208]

Answer:

Stock R more beta than Stock S = 4.2%

Explanation:

given data

Stock R beta = 1.8

Stock S beta = 0.75

expected rate of return = 9% = 0.09

risk-free rate = 5% = 0.05

solution

we get here Required Return

Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta ...........1

Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B

Required Return (Re) =

so here

Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8

Stock R = 0.122 = 12.2 %

and

Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75

Stock S = 0.08 = 8%

so here more risky stock is R and here less risky stock is S

Stock R is more beta than the Stock S.

Stock R more beta Stock S = 12.2 % - 8%

Stock R more beta Stock S = 4.2%

4 0

2 years ago

Suppose that, instead of developing its Datsun line for emerging markets, Nissan simply sold its existing models in those market

mylen [45]

Answer:

Explanation:

(A) First Degree Price Discrimination

(B) it is regarded as a form of price discrimination because the current price at which Datsun models are sold, differs from the former price (the current price is half the original or former price).

Also, this is a deliberate action or business strategy taken by the Nissan automobile company so it is price discrimination.

(C) Nissan might choose this approach because (according to the question) there are emerging markets and the Datsun model of Nissan motors will soon go obsolete.

So since the first aim of a company is to make profit, instead of losing buyers of the old model completely, Nissan will sell the off at much lower prices.

(D) Yes, it will a success move if the company does not presently have the technology to adapt to the new or emerging market for different type or function of vehicles.

8 0

3 years ago

Write a letter to your uncle aboard <br>tell him two things u need for school.

seraphim [82]

Answer: A backpack, And a binder

Explanation:

6 0

3 years ago

Individuals and countries specialize because the opportunity cost of producing goods and services: Multiple choice question.

Darina [25.2K]

Individuals, corporations, and economies specialize because the opportunity cost of producing goods and services differs from country to country, business to business, and individual to individual.

Persons, Corporations, and Economies are bound to specialize in the production of goods and or services in which they hold a stronger comparative advantage than their competition.

<h3>What is comparative advantage?</h3>

This is defined as the ability of an individual, corporate entity, or national to perform an economic activity more efficiently or at a lower (opportunity cost) than the other.

Examples of economic activities are:

Resource management
production of services and goods
distribution of services and goods
consumption of services and goods

See the link below to learn more:

brainly.com/question/7045530

4 0

2 years ago

explain two ways in which the government contributes to the efficient operation of the economic system.​

explain two ways in which the government contributes to the efficient operation of the economic system.