Please show details, Thanks !! 1. Assume that a country\'s production function i

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Please show details, Thanks !!

1. Assume that a country's production function is Y = K1/2L1/2.

a. What is the per-worker production function y = f(k)?

Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What is Y? What is labor productivity computed from the per-worker production function? Is this value the same as labor productivity computed from the original production function?

Assume that 10 percent of capital depreciates each year. What gross saving rate is necessary to make the given capital

Explanation / Answer

production function, in economics, equation that expresses the relationship between the quantities of productive factors (such as labour and capital) used and the amount of product obtained. It states the amount of product that can be obtained from every combination of factors, assuming that the most efficient available methods of production are used.

The production function can thus answer a variety of questions. It can, for example, measure the marginal productivity of a particular factor of production (i.e., the change in output from one additional unit of that factor). It can also be used to determine the cheapest combination of productive factors that can be used to produce a given output.

In economics, the Cobb

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