Daniels Lynch
06/05/2023 · Primary School
50. Marginal Productivity The production function \( z \) for the United States was once estimated as \[ z=x^{0.7} y^{0.3}, \] where \( x \) stands for the amount of labor and \( y \) the amount of capital. Find the marginal productivity of labor and of capital. 51. Marginal Productivity A similar production function for Canada is \[ z=x^{0.4} y^{0.6} \text {, } \] with \( x, y \), and \( z \) as in Exercise 50 . Find the marginal productiv- ity of labor and of capital.
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Exercise 50: United States Production Function
- Marginal Productivity of Labor: \( MP_L = 0.7 x^{-0.3} y^{0.3} \)
- Marginal Productivity of Capital: \( MP_K = 0.3 x^{0.7} y^{-0.7} \)
Exercise 51: Canada Production Function
- Marginal Productivity of Labor: \( MP_L = 0.4 x^{-0.6} y^{0.6} \)
- Marginal Productivity of Capital: \( MP_K = 0.6 x^{0.4} y^{-0.4} \)
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