Re: MICRO Doubt

Posted by kangkan on May 03, 2014; 6:24am
URL: http://discussion-forum.276.s1.nabble.com/MICRO-Doubt-tp7588334p7588339.html

Hi...ISI right?...see,assuming full employment ...we have k=100..hence.L must be 100...but L= 50w..hence w must be 2....now the at the equilibrium l and K, in the neighbourhood of (100,100) the MPK of K is will be 1. hence the real rental rate will be 1.

Thats how i did it :)