Acc 553 Quiz 4

Questions 1 and 2 use the following production function:
Q = K
3
2L
3
2
1. What is the marginal productivity of labor at the point K=2 and L=3?
(partial derivative of output with respect to labor evaluated at the bundle of capital and labor given in the question) (5 points)
2. What is the marginal productivity of capital at the point K=3 and L=4?
(partial derivative of output with respect to capital evaluated at the bundle of capital and labor given in the question.) (5 points)
3. Suppose the production function takes on the following form:
Q = aK
5
2 + ln(L2)
a) What is the marginal productivity of labor? (5 points)
b) What is the marginal productivity of capital? (5 points)
c) What is the Marginal Rate of Technical Substitution? (5 points)