Problem

Gator Tee Shirtz has determined that its productivity is given by the equation f(x,y)=36x1/4y3/4, when x units of labor and y units of capital are used. Compute the marginal productivity of capital when a4 units of labor and b4 units of capital are used where a and b have the following values:
a=3, and b=6
Round your answer to two decimal places.

Answer

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Answer

So, the marginal productivity of capital when a4 units of labor and b4 units of capital are used is 27.

Steps

Step 1 :The productivity function is given by f(x,y)=36x1/4y3/4.

Step 2 :The marginal productivity of capital is given by the partial derivative of the productivity function with respect to y, denoted as fy.

Step 3 :We have fy=36x1/434y1/4.

Step 4 :Substitute x=a4 and y=b4 into the equation, we get fy=36a34b1.

Step 5 :Given a=3 and b=6, substitute these values into the equation, we get fy=3633416.

Step 6 :Calculate the above expression, we get fy=27.

Step 7 :So, the marginal productivity of capital when a4 units of labor and b4 units of capital are used is 27.

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