Derive the mathematical expression for the marginal product

Reference no: EM132197933

Question: Consider the case when the labour input can take any value, so that the firm can make infinitesimal adjustments of the amount of labour input hired.ï¼ˆSorry, there's no labour function,need to use the original function).

a. Derive the mathematical expression for the marginal product of labour, MPN.Is the marginal product positive and diminishing? Justify your response.

b. Derive the mathematical expression for the labour demand function.

c. How does the labour demand depend on the real wage? In particular, would the firm want to increase, decrease or leave unchanged its labour input? Answer this question by computing the derivative âˆ‚Nd/âˆ‚w.Is your response consistent with your findings in part (2) of the question?

d. How does the labour demand depend on the value of TFP z? In particular, would the firm want to increase, decrease or leave unchanged its labour input? Answer this question by computing the derivative âˆ‚Nd/âˆ‚z. Is your response consistent with your findings in part (3) of the question?

Reference no: EM132197933

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