Calculating Marginal Productivity of Capital and Labor
Not what you're looking for?
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?
Purchase this Solution
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.
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 ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.