Question

A Cobb-Douglas production function is given by Q = 5L^1/2K^1/2 Assuming that capital, K, is fixed at 100, write down a formula for Q in terms of L only. Calculate the marginal product of labour when (a) L = 1 (b) L = 9 (c) L = 10 000 Verify that the law of diminishing marginal productivity holds in this case.

          A Cobb-Douglas production function is given by
Q = 5L^1/2K^1/2
Assuming that capital, K, is fixed at 100, write down a formula for Q in terms of L only. Calculate the marginal product of labour when
(a) L = 1 (b) L = 9 (c) L = 10 000
Verify that the law of diminishing marginal productivity holds in this case.

A Cobb-Douglas production function is given by
Q = 5L^1/2K^1/2
Assuming that capital, K, is fixed at 100, write down a formula for Q in terms of L only. Calculate the marginal product of labour when
(a) L = 1 (b) L = 9 (c) L = 10 000
Verify that the law of diminishing marginal productivity holds in this case.

Added by Marcos Q.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Niranjan N

02/04/2022

Step 1

First, we substitute K = 100 into the Cobb-Douglas production function, we get: Q = SL^100ln Show more…

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A Cobb-Douglas production function is given by Q = 5L^1/2 K^1/2. Assuming that capital, K, is fixed at 100, write down a formula for Q in terms of L only. Calculate the marginal product of labour when (a) L = 1 (b) L = 9 (c) L = 10 000. Verify that the law of diminishing marginal productivity holds in this case.