DSE 2012 q9 and q25

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DSE 2012 q9 and q25

Kuldeep
Heyy can somebody please help me with the q9 and q 25 of dse 2012
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Re: DSE 2012 q9 and q25

maahi
This post was updated on .


25 ) output =  0  , w<20
 5 (w-20 ) , 20<w<140
c ,w>140

 so 5 (140 - 20 ) = 600 d output produced by each labour per day
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Re: DSE 2012 q9 and q25

Kuldeep
Thanks for d reply maahi...!!
just one thing for Q 25.. How r u sure dat d wage will be 140 .. As in why is thw age between 20 and 140... and why not beyond 140
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Re: DSE 2012 q9 and q25

maahi
because productivity is constant after w = 140 . so i think it means d saturation point no matter how many workers u add or increase d wage d productivity wud not increase so y will u pay anything greater than 140 .
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Re: DSE 2012 q9 and q25

diptendra1991
Maahi,
         I think u have done a little mistake in calculating the expected value of x.

E[x] = 0 rather than 1/2 and E[x^3] = 0 which implies

E[x^3] - E[x] E[x^2]=0