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# {21]} Production Function and Labor Market a. The production function is giyll by: l&quot; = 25K "&quot;51. Your goal is to compute the marginal...

The production function is given by:

{21]} Production Function and Labor Market
a. The production function is giyll by: l&quot; = 25K “&quot;51.“5 . Your goal is to compute
the marginal product of labor [MPL] using Excel i. ii. {15) Let’s set K=l Hi}. You should be able to characterize Y as a function
of L now. [in an excel spreadsheet create 3 columns and label them: “L&quot;,
“Y&quot;, and “MP &quot;. 1n the column labeled “L&quot;, put in values for L, e.g.,
integers ranging ﬁom 1 to lﬂﬂ. {So, you will have It!) rows]. Thll, in
the column labeled &quot;Y&quot;, put in the solution for Y using the production
function. Finally, in the column labeled “MP &quot; do the following computation: 371* where the numerator is the change in output in one row
from the preceding row, and the denominator is the change in labor in one row from the preceding row [which based in the example a few lines
above would be 1).
{5) Suppose the wage = 15. How many workers will the ﬁrm want to hire {based on your spreadsheet}? Explain

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