A country's production is described by the function f(x, y) = 30x y units, when x units of labor and y units of capital were used. a) Compute Jz and f.- b) What is the marginal productivity of labor and the marginal productivity of capital when the amounts expended on labor and capital are 100 units and 30 units, respectively? c) In order to increase the country's productivity, should the government have encouraged capital investment rather than increasing expenditure on labor?

A country's production is described by the function f(x, y) = 30x y units, when x units of labor and y units of capital were used. a) Compute Jz and f.- b) What is the marginal productivity of labor and the marginal productivity of capital when the amounts expended on labor and capital are 100 units and 30 units, respectively? c) In order to increase the country's productivity, should the government have encouraged capital investment rather than increasing expenditure on labor?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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