Suppose that a firm's production function is given by Q = K0.33L0.67, where MPK = 0.33 K-
Question:
a. As L increases, what happens to the marginal product of labor?
b. As K increases, what happens to the marginal product of labor?
c. Why would the MPL change as K changes?
d. What happens to the marginal product of capital as K increases? As L increases?
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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