If we assume a Cobb-Douglas production function, where the share of capital is 0.25 and the share of labor is 0.75, then the marginal product of labor is equal to
A)Y/N
B)3Y/4N
C)(3/4)N
D)3K/4N
E)3N/4Y

Question

Quizplus · Accepted Answer

In a Cobb-Douglas production function, the marginal product of labor (MPL) is equal to the share of labor (0.75) times the total production (Y) divided by the total amount of labor (N). Mathematically, MPL = 0.75Y/N. Simplifying this expression gives MPL = 3Y/4N. Therefore, the correct choice is B.

If We Assume a Cobb-Douglas Production Function, Where the Share