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Consider the following production functions Y AK05 L05 Y AK L A Fixing total factor productivity A at 10 and capital employment K at 4 units what is the marginal product of labor

Consider the following production functions:

  • Y = A(K05)(L05)
  • Y = AK + L

A Fixing total factor productivity (A) at 10 and capital employment (K) at 4 units, what is the marginal product of labor associated with labor employment of 25, 35, and 45 for each production function? Do these production functions exhibit diminishing returns to labor employment? Explain

B Are labor and capital complements under these production functions? Explain

C Is either production functions a “Cobb-Douglas” function? Explain

Aug 09 2020 Read more Less More

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