Suppose That the Production Function for the Economy Is: Y

question 15

Multiple Choice

Suppose that the production function for the economy is: Y = AK¹/⁴ᴸ³/⁴.Assume that A = 1000,the current capital stock is $32 000 billion,and the labour force is 120 million (or 0.120 billion) workers.All else equal,if the capital stock increases by $8000,the value of the marginal product of labour will be

• A) $18 021.09.
• B) $20 223.24.
• C) $21 625.30.
• D) $60 070.29.

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