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The productivity of a country is given by the Cobb-Douglas function f (x, y) = 55x0.34y0.66 , where x represents the utilization of labor and
The productivity of a country is given by the Cobb-Douglas function f (x, y) = 55x0.34y0.66 , where x represents the utilization of labor and y represents the utilization of capital. Currently the country uses 1,500 units of labor and 625 units of capital. Use marginal analysis to estimate the change that will result from the addition of 1 more unit of labor if the number of units of capital remains the same. 26.9547 units per unit increase in labor expenditure 33.3258 units per unit increase in labor expenditure 0.0111 units per unit increase in labor expenditure 48.8853 units per unit increase in labor expenditure 10.4931 units per unit increase in labor expenditure
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