Explore BrainMass
Share

# Calculating Marginal Productivity of Capital and Labor

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

The production function for the personal computers of DISK Inc. is given by Q= 10 (K *L)^0.5. DISK's competitor FLOPPY Inc's production function is Q = 10K^0.6 L^0.4.
(a) If K is limited to 9 units, in which company MP of labor greater?
(b) What can you say about the MP of labor for a given K?

https://brainmass.com/economics/production/42820

#### Solution Preview

see the file for the standard display of formulas:

The production function for the personal computers of DISK Inc. is given by Q= 10 (K *L)^0.5. DISK's competitor FLOPPY Inc's production function is Q = 10K^0.6 L^0.4.
(a) If K is limited to 9 units, in which company MP of labor greater?
(b) What can you say about ...

#### Solution Summary

The solution provides detailed explanation of how to compute marginal productivity of labor and capital using specific production functions given in the problem.

\$2.19