khuak877
khuak877
04.07.2020 • 
Business

Some economists believe that the U.S. economy as a whole can be modeled with the following production function, called the Cobb-Douglas production function: where Y is the amount of output, K is the amount of capital, L is the amount of labor, and A is a parameter that measures the state of technology For this production function, the marginal product of labor is: Suppose that the price of output (P) is $2, A is 3, K is 2,985,984, and L is 1,728. The labor market is competitive, so labor is paid the value of its marginal product. The amount of output produced (Y) is ,and the dollar value of output (PY) is$ The wage (W) is S , and the real wage ) is .

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