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quiz2spring2007 - Economics 302 Spring 2007 Quiz#2 Name...

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Economics 302 Name _____________________________________ Spring 2007 Quiz #2 Section Number ______________________________ The following quiz is worth a total of 2.5 points. If your work is illegible or sloppy points will be subtracted (.25 for marginally sloppy work, .5 for sloppy work, and 1 for unbearably sloppy work). 1. Suppose that the production function for an economy is given by Y = F (K, L) = A K ½ L ½ Where Y is output, A is the level of technology, K is capital and L is labor. a. (.25 points) If the value of A is 100, output is 5000 units, and there are 100 units of labor, what is the number of units of capital equal to in this economy? Show your work. b. (.25 points) Given the values given in part (a), what is output per unit of capital? c. (.25 points) Write an expression for the marginal product of capital for this production function. Do not calculate a numerical value for this, but provide a general equation for MPK. d. (.25 points) If there is a technological improvement in this economy and A increases to 200 while labor and capital are unchanged, what will the
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