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 ▸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* ?
Define the following terms: Absolute advantage; Comparative advantage.
To what extent would a change in fiscal policy increase real GDP for an economy?