The productivity of a country is given by f(x,y) = 100x0.6°y0.37, where x is the amount of labor and y is the amount of capital. (a) Compute the marginal productivities of labor and capital when x = 300 and y = 500. (b) Use part (a) to determine the approximate effect on productivity of increasing capital from 500 to 501 units, while keeping labor fixed at 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 299 units while keeping capital fixed at 500 units?

The productivity of a country is given by f(x,y) = 100x0.6°y0.37, where x is the amount of labor and y is the amount of capital. (a) Compute the marginal productivities of labor and capital when x = 300 and y = 500. (b) Use part (a) to determine the approximate effect on productivity of increasing capital from 500 to 501 units, while keeping labor fixed at 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 299 units while keeping capital fixed at 500 units?

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

6th Edition

ISBN:9781337111348

Author:Bruce Crauder, Benny Evans, Alan Noell

Publisher:Bruce Crauder, Benny Evans, Alan Noell

Chapter2: Graphical And Tabular Analysis

Section2.1: Tables And Trends

Problem 1TU: If a coffee filter is dropped, its velocity after t seconds is given by v(t)=4(10.0003t) feet per...

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