Find the output of economy one


Assume two identical economies with a production function Y = EN. "E" denotes the efficiency of labor. Labor supply is given by Ns = W/P . Suppose that in the "Economy I", E = 2+ (3/4)(W/P) . While in the "Economy II" E = 6. The output of economy I is _____units higher than the output in the economy II.

A. -28.
B. 28.
C. 36.
D. 64.

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Microeconomics: Find the output of economy one
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