Economic Assignment Sample

Added on - 21 Apr 2020

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Running head: ECONOMIC ASSIGNMENT1Economic AssignmentName:Institutional Affiliation:
ECONOMIC ASSIGNMENT2Economic AssignmentA simple economy produces just one product, Q, with two factors of production M (men) and A(acres). There are 100 identical firms, each with production function: Q = 10M^1/3 A^2/3 to theeconomy as a whole, M is in absolutely inelastic supply at M = 900, and A is in absolutelyinelastic supply at A = 6001.The men and acres employed by the firm;The men and acres employed will be 900 and 600 respectively by the firm2.The marginal product of men and the marginal product of acres;Marginal product of men will be given by (900)1/3=300Marginal product of acres will be given by 6002/3=120,0003.The wage per man and rent per acre;Wage per man=900*1/3=300Rent per acre=600*2/3=4004.The marginal costMarginal cost per man will be 900-300=600Marginal cost per acre will be 600-400=2005.The absolute share of the two factors.A=400
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