Consider the production function q= L^(1.5)+5K 1. Starting from the input combination (5,9), calculate the marginal...

Consider the production function q= L^(1.5)+5K

1. Starting from the input combination (5,9), calculate the marginal product of adding one worker. (Hint: Make a table to organize your calculations.)

2. What is the marginal product of adding another worker?

Solutions

Expert Solution

production function q= L^(1.5)+5K

1. Input Combination (5,9) q= 5^(1.5)+5X9 = 11.18+45= 56.18 . Putting another worker thus the input combination will be (6,9) thus q = 6^(1.5)+5X9 = 59.69

thus marginal product of worker is = 59.69-56.18/6-5 = 3.51

2. Puttimng another worker the new input combination will be = (7,9)

thus q = 7^1.5 +5+9 = 63.52

thus marginal product of adding another worker, 63.52-59.69/7-6 = 3.83

Rahul Sunny answered 2 years ago

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