WebApr 14, 2024 · Harrod-Domar assumes the capital has constant marginal returns. It differs from the Solow growth model, where capital has a decreasing marginal return. Another difference between the two is the effect of the saving rate. Solow assumes that changes in the saving rate have temporary effects. But, in the Harrod-Domar model, it had a … WebExpert Answer La función de producción es Q = AL^aK^b, donde a > 0 y b > 0. a. El producto marginal del trabajo es MPL = aAL^a-1K^b b. El producto marginal del capital es MPK = bAL^aK^b-1 c La tasa marginal de sustitución técnica es MRTS = MPK/MPL= (bAL^aK^b-1)/ (aA … View the full answer Previous question Next question

Difference between Marginal Efficiency of Capital and Marginal ...

Weba) The government prints $1 million in new bills to finance its spending. b) The average price of food items rise by 20%. c) The price of houses and apartment rentals falls by 30%. … firebird ast

Diminishing Marginal Returns - Investopedia

WebNov 20, 2024 · Looking at the total rate of return, $200 / $1,000 * 100 percent = 20 percent . If you made an additional $50 profit , then ($250) / $1,000 * 100 percent = 25 percent . … WebFirst, calculate the marginal cost of capital of the company. Solution: Calculation of the weighted marginal cost of the capital: – WMCC = (50% * 13%) + (25% * 10%) + (25% * … WebWhat is a marginal return? Factor's Return: In economic terms, factor productivities are another word for returns to factors. When one or more factors are altered while the other factors... est and act