Consider the following production function: Q = K^a + KL^(b+2), find the marginal product of capital.

The marginal product of capital (MPK) is defined as the additional unit of output, all things being equal, that comes with an additional unit of capital used.
The equation for MPK is: change in output/change in capital.
This would look like:
MPK = (a)(Ka-1) + (1)(K0)(Lb+2) = aKa-1 + LB+2

ZF
Answered by Zachary F. Economics tutor

3936 Views

See similar Economics University tutors

Related Economics University answers

All answers ▸

microeconomics


Discuss the possible benefits from horizontal integration of firms in a market where profit margins are falling


Given the following supply and demand functions find the Market Equilibrium point: Qs = 10 +15P Qd = 150 -5P. Now assume there is a positive shock in demand: Qd2 = 200 - 5P find the new Equilibrium Price and Quantity.


Taking the IS-LM and AS-AD relationship, show the shifts in the curves and explain the changes variables such as output, exchange rate, employment and price level following a decrease in interest rate.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences