Solved: Cobb and Douglas used the equation to model the American economy from 1899 to
Chapter 14, Problem 86(choose chapter or problem)
Cobb and Douglas used the equation to model the American economy from 1899 to 1922, where is the amount of labor and is the amount of capital. (See Example 3 in Section 14.1.) (a) Calculate and . (b) Find the marginal productivity of labor and the marginal productivity of capital in the year 1920, when and (compared with the assigned values and in 1899). Interpret the results. (c) In the year 1920 which would have benefited production more, an increase in capital investment or an increase in spending on labor?
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