Given the cobb-douglas function $Y=1.01*K^{0.25}L^{0.75}$
$Y=$output; $K=$capital; $L=$labor
How can I determine the marginal products of labor and capital? Not used in this equation. Thanks for the help.
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1Go back to your definitions: Marginal product of labour = $\frac{\partial Y}{\partial L}$, and similarly for capital. – stochasticboy321 Sep 30 '15 at 13:15
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So I'll be getting an equation as my answer? – DC22287 Oct 01 '15 at 05:55
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@DC22287 You´ll get an expression for $\frac{\partial Y}{\partial L}$. This can be written as an equation $\frac{\partial Y}{\partial L}=\ldots$ – callculus42 Oct 01 '15 at 12:51
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The marginal product is defined as the partial derivative with respect to the respective input.
In your case $\frac{\partial Y}{\partial L}=1.01 * 0.75 * ( \frac{K}{L})^{0.25}$ for labor and $\frac{\partial Y}{\partial K}=1.01 * 0.25 * ( \frac{K}{L})^{0.75}$ for capital.
Bayesian
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