Using a Cobb-Douglas production function,Y/N = (K/N)b,the marginal product of capital is
A)b(K/N)b-1.
B)b(K/N).
C)(K/N)b-1.
D)(K/Y)b.

Question

Quizplus · Accepted Answer

The marginal product of capital in a Cobb-Douglas production function, Y/N = (K/N)^b, is derived by taking the partial derivative of the production function with respect to capital, K. This results in b(K/N)^(b-1), which matches choice A.

Using a Cobb-Douglas Production Function,Y/N = (K/N)b,the Marginal Product of Capital