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 ▸What is the difference between consumer surplus and producer surplus, and what significance do these two concepts have on the free market?
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.
Define the following terms: Absolute advantage; Comparative advantage.