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Title: A firm has current and future marginal productivity of capital given by MPK = 10,000 - 2K + N, and m Post by: johnpaul92 on Jan 30, 2016 A firm has current and future marginal productivity of capital given by MPK = 10,000 - 2K + N, and marginal productivity of labor given by MPN = 50 - 2N + K. The price of capital is $5,000, the real interest rate is 10%, and capital depreciates at a 15% rate. The real wage rate is $15.
(a) Calculate the user cost of capital. (b) Find the firm's optimal amount of employment and the size of the capital stock. Title: Re: A firm has current and future marginal productivity of capital given by MPK = 10,000 - 2K + N, a Post by: supaman on Feb 4, 2016 Content hidden
Title: Re: A firm has current and future marginal productivity of capital given by MPK = 10,000 - 2K + N, and m Post by: johnpaul92 on Feb 13, 2016 Wow, you answered what I thought was impossible to answer, thank you!
Title: Re: A firm has current and future marginal productivity of capital given by MPK = 10,000 - 2K + N, and m Post by: supaman on Feb 14, 2016 Every little bit helps, right? Glad I solved your question
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