Question

6. Suppose the production function takes on the following form: Q=K’L? a) What is the marginal productivity of labor? Evaluate it at L = 5 and K = 7. (5 points) b) What is the Marginal Rate of Technical Substitution? Evaluate it at L = 5 and K = 7. (5 points)

Answer 1

as of labor (MPL) = ? Marginal productivity of i MPL = acol au When a dal is the partial differentiation of ƏL with respect to t . Ple: 2 (k3 (2) de TMP= k3 x 22 When k= 7, L = 5 PPL = (7/3 + 2x5 - 21x7x2x5 | пр. – чо I MR = ? MRT TTPe T TPK

Now we have to find (MPA) | прад (6) ok do) is the partial differentiation of CO with respect to ck al here &co. Ok telpu = 2(k312) an = 3k² x L² :,MIG - FIRE 2 k3x22 3K²X22 = 1/3 x 2 R = 2K Whank = 7 1=5 = 247 325 I MR = 14