Given the production function: Y=AK^0.5 L^0.5, of an economy, where the capital stock (K) is 64, Labour (L) is 121 and total factor productivity (A) is 100, calculate output (Y) for this economy.
A year later the economy now has Labour of 144 (all other factors are unchanged). Recalculate output for this economy. Then calculate the rate of real economic growth over this time period.
Has the economic growth improved the well-being of the citizens in this economy?
Given the production function: Y=3K^4+18L, what is the marginal product of labour and capital. Interpret your answer for the marginal product of labour.
Given the production function: 〖Y=K〗^0.4 L^0.8, what is the marginal product of labour and capital when K is 10 and L is 100. Interpret your answer for the marginal product of capital.