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2 votes

Cobb-Douglas Production Function - Finding units of labour to maximise production

In this thread, two problems are discussed: Problem 1: \begin{eqnarray*} \max_{l, k} & \ 16 l^{\frac{1}{4}}k^{\frac{3}{4}} \\ \text{s.t. } & 50l + 100k \leq 500,000 \\ \text{and } & l\geq ...
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3 votes

Marxist Labor Theory of Value Become Obsolete?

Has the Marxist Labor Theory of Value Become Obsolete? Is it currently used for anything? The labor theory of value is no longer used in current economic research. You will not find it in ...
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1 vote

The correct way for log wage and long difference of wage

It really comes down to the theory. You should think about the theoretical effect of ICT exposure on wage, and choose the outcome accordingly. My suggestion is motivated by practicality rather than ...
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2 votes

Comparative statics when price of an input increases

Consider the following problem: \begin{eqnarray*} \max_{y, k, l} & py - wl- rk \\ \text{s.t. } & y\leq k^\alpha l^{1-\alpha} \\ \text{and } & k, l, y \geq 0\end{eqnarray*} where $p >0$, ...
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