Suppose that the production function for the economy is Y = AK⁰.²ᴸ⁰.⁸.If the capital stock = 40 000,the quantity of labour = 10 000,and the efficiency index = 1,the marginal product of capital is

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The marginal product of capital (MPK) is found by taking the partial derivative of the production function with respect to capital (K). For the given production function Y = AK^0.2L^0.8, MPK = 0.2 * A * (K^(-0.8)) * (L^0.8). Substituting A = 1, K = 40,000, and L = 10,000, we get MPK = 0.2 * 1 * (40,000^(-0.8)) * (10,000^0.8) = 0.066.

Suppose That the Production Function for the Economy Is Y