Question: 1 5 points ) Suppose the production function is given by Y = zK alpha N ( 1 alpha ) where N is
points Suppose the production function is given by
Y zKalpha N alpha
where N is labour inputs, K is capital, alpha is the factor share of capital,
and z is total factor productivity.
a What is the marginal product of labour, M PN of the firm?
b Solve the for firms problem for the equation describing the units of
labour the firm will demands for any given wage, w What is this
function called?
c Does the amount of labour the firm demands go up or down when
the wage goes up Prove it one way is to derive N d
w
d Let w k alpha and z What is the amount of labour
demanded by the firm? Round to the nearest unit.
e No let w k alpha and z What is the amount of
labour demanded by the firm? Round to the nearest unit
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