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
Related Economics University answers
All answers ▸A poor economy is at its steady state equilibrium. It is given a foreign aid package, to help it catch up with the developed world. Is this a good policy decision and why or why not?
microeconomics
Explain how an increase in the level of taxation can affect the level of aggregate demand
Mr. A has utility function U(x,y) = ln(x) + ln(y) and budget constraint M = px + qy, solve for the demand functions x* and y* ?