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?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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