Assume a Cobb-Douglas production function in which the share of capital is a = 1/4 and the share of labor is b = 3/4.In this case, the marginal product of capital is

Question

Quizplus · Accepted Answer

The marginal product of capital in a Cobb-Douglas production function is given by $a\frac{Y}{K}$, where $a$ is the share of capital, $Y$ is the total output, and $K$ is the capital input. Given $a = 1/4$, the marginal product of capital is $\frac{1}{4}\frac{Y}{K}$ or $Y/4K$.

Assume a Cobb-Douglas Production Function in Which the Share of Capital