Answer to Question #64577 in Macroeconomics for ver

Question #64577
Hi can somebody solve this with solutions for me? C=5000+0.4Yd I=3000 G=8000 Net Taxes=7000 X=12000 M=10000 Yd=Y-T Qns: Finding equlibrium level of income (Y)
1
Expert's answer
2017-01-16T09:53:13-0500
If the output of the firm (call it y) increases as you increase x but at a diminishing rate, then y=100*exp(-x) wouldn't be a valid representation of this firm’s production function, because at x = 0, 1, 2 and 3 the output is y = 100, 36.78, 13.53 and 4.98 respectively, so according to this production function the output of the firm (y) decreases as you increase x.

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