Suppose the economy's production function is Y = AK^0.3^N^0.7^.Suppose K = 200,N = 2000,and A = 1.Calculate the marginal product of capital. A)1)0 B)1)5 C)2)0 D)2)5

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We can find the marginal product of capital (MPK) by taking the derivative of the production function with respect to K: MPK = ∂Y/∂K = A^0.3^N^0.7 Plugging in the given values, we get: MPK = (1)(1)(200)(0.3)(1)(2000)(0.7)(1) = 1,260 Therefore, the marginal product of capital is 1)5, or 1,260 units of output per additional unit of capital.

Suppose the Economy's Production Function Is Y = AK0

Suppose the Economy's Production Function Is Y = AK⁰