Unformatted text preview: Economics 2G03/2X03 Page 12 of 13 4. Consider the production function given by y: 0tL2 + BK3 where L is labor and K is capital
while 01 and B are positive constants. a) If K=2 find equations for: i. Total product curve of labor (2 marks)
ii. Average product curve labor (2 marks)
iii. Marginal product curve labor (2 marks) b) If the price of Capital is PK and that of labor is PL, what is the equation of the ﬁrm’s output
expansion path? (4 marks) '
TF9 cwﬂ 2 4
C»). i) 3: M T/3 ls’ [MPL : .2014 i/ MP1, PL
(3) m - i;
’ 2&1 * L ...
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- Fall '10