Question

Suppose the production function is given by Q(L,K) = L 4/3

K 4

1

. Assuming capital is fixed,

find APL and MPL.

Answer 1

$AP_L=\frac {TP}{L}$

$AP_L=\frac {L^\frac{4}{3}K^\frac{1}{4}}{L}=L^\frac{1}{3}K^\frac{1}{4}$

$MP_L=\frac{\Delta TP_L}{\Delta L}$

$MP_L=\frac{4}{3}L^\frac{1}{3}K^\frac{1}{4}$