Question
11. (10 points) Suppose the firm's output Q is related to capital input K and labour input L by the production function Q=KL (a):
11. (10 points) Suppose the firm's output Q is related to capital input K and labour input L by the production function Q=KL (a): Find dQ/dk (marginal product of capital). (b): Find dQ/dL (marginal product of labour). (c): Find dQ/dK and dQ/dL and show that they have values less than zero (diminishing returns to factor). (d): Suppose further that K and L are given by the linear functions. Find dQ/dt if K = 5 + 2t and L = 2 + t.
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
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