Question:
Consider an economy where technology is characterised by the production function:
$Y = 50K^{0.4}L^{0.6}$
where, Y is output, K is capital, and L is labour.
Assuming perfect competition in the product market and in the factor markets, the share of total income paid to labour is equal to
Consider an economy where technology is characterised by the production function:
$Y = 50K^{0.4}L^{0.6}$
where, Y is output, K is capital, and L is labour.
Assuming perfect competition in the product market and in the factor markets, the share of total income paid to labour is equal to
$Y = 50K^{0.4}L^{0.6}$
where, Y is output, K is capital, and L is labour.
Assuming perfect competition in the product market and in the factor markets, the share of total income paid to labour is equal to
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Updated On: Oct 1, 2024
- 0.2
- 0.3
- 0.4
- 0.6
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The Correct Option is D
Solution and Explanation
The correct answer is (D): 0.6
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