Exercise 5 For each of the production functions below: (1) find the marginal product of labor (i.e., MP₁ = q (L.K)) and check whether it is diminishing, constant or increasing in labor OMPL); (2) find the marginal product of capital (i.e., ƏL ƏL (i.e., visually or computing and interpreting MPK = 9(K)) and check whether it is diminishing, constant or increasing in capital (i.e., visually ак or computing and interpreting labor for capital (i.e., MRTSL,K in labor (i.e., visually or computing and interpreting MRTSLK) ƏL OMPK); and (3) find the marginal rate of technical substitution of ак = MPL) and check whether it is diminishing, constant or increasing MPK

Exercise 5 For each of the production functions below: (1) find the marginal product of labor (i.e., MP₁ = q (L.K)) and check whether it is diminishing, constant or increasing in labor OMPL); (2) find the marginal product of capital (i.e., ƏL ƏL (i.e., visually or computing and interpreting MPK = 9(K)) and check whether it is diminishing, constant or increasing in capital (i.e., visually ак or computing and interpreting labor for capital (i.e., MRTSL,K in labor (i.e., visually or computing and interpreting MRTSLK) ƏL OMPK); and (3) find the marginal rate of technical substitution of ак = MPL) and check whether it is diminishing, constant or increasing MPK

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 8TY

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