If K = 36 and L = 16, what is the firm's marginal product of labour?

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BlackTom AI · Accepted Answer

The question presents K = 36 and L = 16 and asks for the firm’s marginal product of labour, but it does not provide a production function F(K, L) or any output data.

Key consideration: Marginal product of labour (MP_L) is defined as the partial derivative ∂F/∂L, i.e., how output changes when labour changes, holding capital constant. To compute MP_L from data, you typically need either:
- the functional form F(K, L) to differentiate, or
- observed output at L and at L+1 (or another change in L) with K held fixed, so you can compute ΔOutput/ΔL.

Because neither the production function nor any output values are given, there is no basis to determine MP_L uniquely from K = 36 and L = 16 alone.

If the problem did provide an explicit production function, for example F(K, L) = K^0.5 * L^0.5, or F(K, L) = a + bK + cL + dKL, then you would take the partial derivative with respect to L (or compute the slope from a small change in L) to find MP_L. Alternatively, if you were given two output figures at L and at L+ΔL while K is constant, you would compute MP_L as (ΔOutput)/(ΔL).

In short, with only the single input pair (K = 36, L = 16) and no output data or production function, MP_L cannot be determined. The value 1.5, while provided as an answer elsewhere, cannot be justified without additional information about the production process or observed outputs.

If you did have a dataset that showed output at L = 16 and at L = 17 with K fixed, you could compute MP_L as (Output at L=17 − Output at L=16) / (17 − 16) = ΔOutput. If the resulting ratio happened to be 1.5, that would explain that specific figure.

ECC2000 - ECC5900 - S2 2025 ECC2000/5900 Mid-Semester Test - Quiz - NO SAFE EXAM BROWSWER NEEDED - 8 September 2025, opens 2pm (Melbourne, Australian time) duplicate

If K = 36 and L = 16, what is the firm's marginal product of labour?

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