Consider the following production function: q = f(K, N) = 4KN, where q is output, the two inputs are capital K and labor N. For this production function, what is the marginal product of labor (MPN)? part 1
Consider the following production function: q = f(K, N) = 4KN, where q is output, the two inputs are capital K and labor N. For this production function, what is the marginal product of labor (MPN)? part 1
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.3P
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Transcribed Image Text:Consider the following production function:
q = f(K, N) = 4KN,
where q is output, the two inputs are capital K and labor N.
For this production function, what is the marginal product of labor (MPN)?
part 1
O MPN = 4
O MPN = 4N
O MPN = 4/N
MPN = 4K/N
O MPN = 4K
For this production function, which of the following statements is true?
part 2
Capital and labor are substitutes.
There is diminishing marginal product of labor.
There is diminishing marginal product of capital.
Capital and labor are complements.
O None of the above.
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