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The productivity of a country is given by f(x, y) = 600x^2/3 y^1/3, where x and y are the amount of labor and capital.
a) Compute the marginal productivities of labor and capital when x = 125 and y = 64.
b) Use part (a) to determine the approximate effect on productivity of increasing capital from 64 to 66 units, while keeping labor fixed at 125 units.
c) What would be the approximate effect of decreasing labor from 125 to 124 units while keeping capital fixed at 64 units?

Sagot :

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