Search results with tag "Marginal product of labor"
CHAPTER 6 PRODUCTION - University of Houston
www.uh.eduThe marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical substitution of hours of labor for hours of machine-capital is 1/4.
Market Equilibrium and Applications - MIT OpenCourseWare
ocw.mit.edu4. If the marginal product of capital is six times as large as the marginal product of labor and the price of capital is three times as large as the price of labor, for costs to be minimized: A. the price of capital must fall. B. more labor should be used and less capital. C. more capital should be used and less labor.
Solutions to Homework 2 - Information Technology Solutions
faculty.ucr.eduThe marginal product of capital (labor) is the change in total output associated with a one (in nitesimal) unit change in capital (labor), holding labor (capital) xed. So, for example, MPK= 1=3 tells you that if you increase K by , Y will increase by =3. iv. What happens to the value of marginal product of labor (MPL) at the optimal
Chapter 4 Specific Factors and Income Distribution
people.tamu.eduthe law of diminishing marginal returns. – Adding one worker to the production process (without increasing the amount of capital) means that each worker has less capital to work with. – Therefore, each additional unit of labor adds less output than the last. • Figure 4-2 shows the marginal product of labor, which is the increase in output ...