## [answered] A manufacturer estimates that the annual output at a certai

A manufacturer estimates that the annual output at a certain factory is given by Q(K,L)= 16 K^0.7 L^0.3 units, where K is the capital expenditure in thousands of dollars and L is the size of the labor force in worker-hours. Suppose that the current capital expenditure is \$450000 and the labor level is 680 worker-hours.

a. Find the current marginal productivity of capital QK

b. Find the current marginal productivity of labor QL.

a. Find the current marginal productivity of capital QK

Q = 16K0.7L0.3

Qk = dQ/dK = 16*0.7K-0.3L0.3

=11.2K-0.3L0.3

= 11.2*450-0.36800.3

=12.6767 b. Find the current marginal productivity of labor...

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Sep 18, 2020

Solution~0001003337.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

Sep 18, 2020

EXPERT

Tutor