Suppose the production function in medieval europe is y 5 k 0.5l0.5, where k is the amount of land and l is the amount of labor. the economy begins with 100 units of land and 100 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. a. how much output does the economy produce? b. what are the wage and the rental price of land? c. what share of output does labor receive?

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?