Question
This question focuses on labour productivity, labour demand, and generally on the production function. Assume that the Aggregate Production Function is represented by the following
This question focuses on labour productivity, labour demand, and generally on the production function. Assume that the Aggregate Production Function is represented by the following equation:
Y=KANBN+CL
Ystands for output,Kstands for the capital stock,Nstands for the number of people employed,Lstands for the quantity of land used in production,AandBstand for measures of labour efficiency, andCfor a measure of land efficiency.is a parameter whose value is between 0 and 1,andare parameters whose values are1.
(a) Derive the formulas for:
- the marginal product of labor (MPN).
- the marginal product of capital (MPK). - the marginal product of land (MPL).
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