A manufacturer estimates that the annual output at a certain factory is given by units, where K

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A manufacturer estimates that the annual output at a certain factory is given by


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units, where K is the capital expenditure in units of $1,000 and L is the size of the labor force in worker-hours.


a. Find the marginal productivity of capital and the marginal productivity of labor when the capital expenditure is $630,000 and the labor level is 830 worker-hours.


b. Should the manufacturer consider adding a unit of capital or a unit of labor to increase output more rapidly?

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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