If Y = AK^0.5L^0.5 and A, K, and L are all 100, the marginal product of capital is: A)50. B)100. C)200. D)1000.

Name: If Y = AK 0.5 L 0.5 and A, K, and L are all 100, the marginal product of capital is: A)50. B)100. C)200. D)1000.
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Question

Quizplus · Accepted Answer

The marginal product of capital (MPK) is the partial derivative of Y with respect to K. For Y = AK^0.5L^0.5, MPK = 0.5A(K^(-0.5))L^0.5. Substituting A = 100, K = 100, and L = 100, MPK = 0.5 * 100 * (100^(-0.5)) * 100^0.5 = 50.

If Y = AK0

If Y = AK⁰