If we assume a Cobb-Douglas production function where the share of capital is equal to 0.2 and the share of labor is equal to 0.8, then the marginal product of capital is equal to
A)5N/K
B)5Y/K
C)Y/4K
D)Y/5K
E)Y/K

Question

Quizplus · Accepted Answer

In the Cobb-Douglas production function, the marginal product of capital is equal to the partial derivative of the production function with respect to capital, holding labor constant.

So, MPK = 0.2Y/K

Simplifying, MPK = Y/5K

Therefore, the correct answer is D.

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