Suppose that the production function for the economy is: Y = AK¹/⁴ᴸ³/⁴.Assume that A = 1000,the capital stock is $32 000 billion,and the labour force is 120 million (or 0.120 billion)workers.The value of the marginal product of labour is

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The marginal product of labor (MPL) is derived from the production function by taking the partial derivative with respect to labor (L). For the given production function Y = AK¹/⁴L³/⁴, MPL = (3/4) * A * K¹/⁴ * L⁻¹/⁴. Substituting A = 1000, K = 32000, and L = 0.120 into the MPL formula gives the value $17,043.29.

Suppose That the Production Function for the Economy Is: Y