Two countries, Richland and Poorland, are described by the Solow growth model. They have the same Cobb-Douglas production function

2. Two countries, Richland and Poorland, are described by the Solow growth model. They have the same Cobb-Douglas production function, F(K, L) = AKL1-u, but with different quantities of capital and labor. Richland saves 3200 ofits income, while Poor!and saves 10%. Richland has a population growth of 1% per year, and Poor!and has a population growth of 3% per year. (The numbers in this problem are chosen to be approximately realistic descriptions of rich and poor nations). Both nations, have technological progress at a rate of 2% per year, and depreciation at a rate of 5% per year

a. What is the per-worker production function f (k)? (2 pts)
b. Solve for the ratio of Richlands steady state income per worker to Poorlands. (Hint: The parameter α will play a role in your answer). (4 pts)
c. If the Cobb-Douglas parameter α takes the conventional value of about 1/3,how much higher should income per worker be in Richland compared to Poorland? (2 pts)
d. Income per worker in Richland is actually 16 times that of income per worker in Poor!and. Can you explain this fact by changing the value of parameter α? what must it be? Can you think of any way of justifying such a value for this parameter? (3 pts)

Gino's restaurant is a popular restaurant in boston, massachusetts. the owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. the intern, in consultation with the owner, identified the following major activities: activity cost pool activity measure serving a party of diners number of parties served serving a diner number of diners served serving drinks number of drinks ordered some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. data concerning these activities are shown below. serving a party serving a dinner serving drinks total total cost $47,600 $153,000 $59,800 $260,400 total activity 7,000 parties 30,000 diners 46,000 drinks prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. she knew that the total cost for the month was $260,400 and that 30,000 diners had been served. therefore, the average cost per diner was $8.68.required: 1. compute the activity rates for each of the three activities 2. according to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. a party of four diners who ordered three drinks in total b. a party of two diners who do not order any drinks c. a lone diner who orders two drinks 3. convert the total costs you computed in part (1) above to costs per diner. in other words, what is the average cost per diner for serving each of the following parties: a. a party of four diners who order three drinks in total b. a party of two diner who do not order any drinks c. a lone diner who orders two drinks 4. why do the costs per diner for the three different parties differ from each other and from the overall average coast of $9.80 per diner?

What is the relationship between marginal external cost, marginal social cost, and marginal private cost? a. marginal social cost equals marginal private cost plus marginal external cost. b. marginal private cost plus marginal social cost equals marginal external cost. c. marginal social cost plus marginal external cost equals marginal private cost. d. marginal external cost equals marginal private cost minus marginal social cost. marginal external cost a. is expressed in dollars, so it is not an opportunity cost b. is an opportunity cost borne by someone other than the producer c. is equal to two times the marginal private cost d. is a convenient economics concept that is not real

The following costs were incurred in may: direct materials $ 44,800 direct labor $ 29,000 manufacturing overhead $ 29,300 selling expenses $ 26,800 administrative expenses $ 37,100 conversion costs during the month totaled: