The Cobb-Douglas production function with output Q and capital and labor inputs K and L, respectively, is given by: Q = f(K,L) = K«LB where 0 < a < 1 and 0 < B < 1. Find the marginal product of capital fr(K,L) and marginal product of labor fi (K, L). Is production increasing or decreasing with respect to capital? How about labor? b. Determine if the marginal product functions fr(K,L) and f.(K,L) are convex or concave. Give an economic intuition to your answer. а.

The Cobb-Douglas production function with output Q and capital and labor inputs K and L, respectively, is given by: Q = f(K,L) = K«LB where 0 < a < 1 and 0 < B < 1. Find the marginal product of capital fr(K,L) and marginal product of labor fi (K, L). Is production increasing or decreasing with respect to capital? How about labor? b. Determine if the marginal product functions fr(K,L) and f.(K,L) are convex or concave. Give an economic intuition to your answer. а.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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