Write the equations for the marginal product of capital, marginal product of labor, and marginal...
Question:
Write the equations for the marginal product of capital, marginal product of labor, and marginal rate of technical substitution for the long-run production function {eq}q =12K^{0.5} L^{0.5} {/eq}.
Marginal Product:
When a firm purchases machines or hires workers to increase production, they must weigh the marginal costs against the marginal benefit. The marginal cost is the price firms have to pay for the input, and the marginal benefit is the increase in output.
Answer and Explanation: 1
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View this answerThe marginal product of labor is the derivative of output with respect to labor, i.e.,
- {eq}\dfrac{dq}{dL} = 12 *(0.5) K^{0.5}L^{-0.5} {/eq}
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Marginal Product of Labor: Definition, Formula & Example
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Chapter 3 / Lesson 49
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Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.
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