Suppose the u. s. dollar substantially depreciates against the japanese yen. the change in exchange rate will tend to weaken the competitive position of import-competing u. s. car makers. will tend to strengthen the competitive position of import-competing u. s. car makers. will tend to strengthen the competitive position of japanese car makers at the expense of u. s. makers. none of the above

Suppose the production function in an economy is y = k0.5l0.5, where k is the amount of capital and l is the amount of labor. the economy begins with 64 units of capital and 16 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. what are the wage and the rental price of capital? the wage is equal to unit(s) of output and the rental price of capital is equal to unit(s) of output.