Suppose the per-worker production function is given as follow. y- 6kh2/a, where k- (physical) capital per worker, h- human capital per worker The economy is initially endowed with 280 units of (physical) capital per worker and 250 units of human capital per worker. In the neighbourhood of the initial endowments of both physical and human capital, what will be the change in per-worker output when there is a small incremental change in human capital while holding all else constant li.e, what is the marginal product of human capital)?

Suppose the per-worker production function is given as follow. y- 6kh2/a, where k- (physical) capital per worker, h- human capital per worker The economy is initially endowed with 280 units of (physical) capital per worker and 250 units of human capital per worker. In the neighbourhood of the initial endowments of both physical and human capital, what will be the change in per-worker output when there is a small incremental change in human capital while holding all else constant li.e, what is the marginal product of human capital)?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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