Suppose a country can produce two goods, bread and TVs. Both goods use labor in production....

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Suppose a country can produce two goods, bread and TVs. Both goods use labor in production. Capital is specific to TV production and land is specific to bread production. The production functions are specified as follows: 1 YTV = K²(LTV)¹² 1 1 YB = T²(LB) ² 3.1. Show that the marginal product of labor in TV sector is decreasing in the amount of labor in that sector. (3 points) 3.2. Show that the marginal product of labor in bread sector is decreasing in the amount of labor in that sector. (3 points) 3.3. Show that the marginal product of capital is increasing in the amount of labor in TV sector per amount of capital. (3 points) Suppose a country can produce two goods, bread and TVs. Both goods use labor in production. Capital is specific to TV production and land is specific to bread production. The production functions are specified as follows: 1 YTV = K²(LTV)¹² 1 1 YB = T²(LB) ² 3.1. Show that the marginal product of labor in TV sector is decreasing in the amount of labor in that sector. (3 points) 3.2. Show that the marginal product of labor in bread sector is decreasing in the amount of labor in that sector. (3 points) 3.3. Show that the marginal product of capital is increasing in the amount of labor in TV sector per amount of capital. (3 points)

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31 The marginal product of labor in the TV sector is MPlTV YTVLTV 12 K2 LTV12 This is decrea... View the full answer