The productivity of a country is given by f(x,y) = 100x0.650.35, 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 502 units, while keeping labor fixed a 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 298.5 units while keeping capital fixed at 500 units? (a) The marginal productivity of labor is (Do not round until the final answer. Then round to two decimal places as needed.) The marginal productivity of capital is (Do not round until the final answer. Then round to two decimal places as needed.) (b) When capital is increased from 500 to 502 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.) (c) When labor is decreased from 300 to 298.5 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.)

The productivity of a country is given by f(x,y) = 100x0.650.35, 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 502 units, while keeping labor fixed a 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 298.5 units while keeping capital fixed at 500 units? (a) The marginal productivity of labor is (Do not round until the final answer. Then round to two decimal places as needed.) The marginal productivity of capital is (Do not round until the final answer. Then round to two decimal places as needed.) (b) When capital is increased from 500 to 502 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.) (c) When labor is decreased from 300 to 298.5 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

*0.65 0.35 where x is the amount of labor and y is the amount of capital.
The productivity of a country is given by f(x,y) = 100x
(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 502 units, while keeping labor fixed at
300 units.
(c) What would be the approximate effect of decreasing labor from 300 to 298.5 units while keeping capital fixed at 500 units?
(a) The marginal productivity of labor is
(Do not round until the final answer. Then round to two decimal places as needed.)
The marginal productivity of capital is
(Do not round until the final answer. Then round to two decimal places as needed.)
(b) When capital is increased from 500 to 502 units, the approximate change in productivity is
(Do not round until the final answer. Then round to two decimal places as needed.)
(c) When labor is decreased from 300 to 298.5 units, the approximate change in productivity is
(Do not round until the final answer. Then round to two decimal places as needed.)

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