Q4. K=0 K=1] K=2 | K=3 K=4 L=00 L=10 L=2 | 0 L=30 L=4 0 2 24 2 6 28 8 16 24 332 18 36 54 72 32 64 96 128 а) Based on the table above, holding capital constant at 3 units in the short run, what is the marginal productivity of the second Labour, and what is the average productivity of

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 33EQ
icon
Related questions
Question

answer question d

Q4.
K=0 K=1| K=2| K=3 | K=4
L=00
L=1 0
2 24 2 6
28
L=2 0
8
16 $24
332
L=30
L=4 0
18
36
54
72
32
64
96
128
Based on the table above, holding capital constant at 3 units in the short run, what is
a)
the marginal productivity of the second Labour, and what is the average productivity of
three units of Labour?
Based on the inputs and output table above, please derive the production function in the
b)
long run.
Does the production function satisfy the "law of diminishing marginal returns" (LDR)?
c)
And determine the returns to scale for this production function?
As we know Marginal Rate of Technical Substitution MRTSL, K =
K, please use
d)
MPL
the definition to proof MRTSL, K='
/MPx and explain your proof.
/MPx'
Transcribed Image Text:Q4. K=0 K=1| K=2| K=3 | K=4 L=00 L=1 0 2 24 2 6 28 L=2 0 8 16 $24 332 L=30 L=4 0 18 36 54 72 32 64 96 128 Based on the table above, holding capital constant at 3 units in the short run, what is a) the marginal productivity of the second Labour, and what is the average productivity of three units of Labour? Based on the inputs and output table above, please derive the production function in the b) long run. Does the production function satisfy the "law of diminishing marginal returns" (LDR)? c) And determine the returns to scale for this production function? As we know Marginal Rate of Technical Substitution MRTSL, K = K, please use d) MPL the definition to proof MRTSL, K=' /MPx and explain your proof. /MPx'
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning