Problem

The monthly output of a factory is Q(x, y) = 90x0.6y0.4, where a is the number of employee...

The monthly output of a factory is Q(x, y) = 90x0.6y0.4, where a is the number of employees and y is the number of machines.

a. Find Qx and Qy.


b. If the factory currently uses 50 employees and 16 machines, find the marginal productivity of labor (employees) and the marginal productivity of capital (machines).


c. At the current level of 50 employees and 10 machines, would production increase more rapidly with five more employees or two more machines?

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