Math Problem Statement

F(A,K,L)=A(K^(1/2) + L^(1/2))^2 Find MPL and MPK

Solution

The given production function is:

F(A,K,L)=A(K1/2+L1/2)2F(A, K, L) = A(K^{1/2} + L^{1/2})^2

To find the Marginal Product of Labor (MPL) and the Marginal Product of Capital (MPK), we need to take the partial derivatives of the production function with respect to LL and KK, respectively.

Marginal Product of Labor (MPL)

The MPL is the partial derivative of the production function with respect to LL.

  1. Start with the production function: F(A,K,L)=A(K1/2+L1/2)2F(A, K, L) = A(K^{1/2} + L^{1/2})^2

  2. Apply the chain rule to differentiate with respect to LL: FL=A2(K1/2+L1/2)L(K1/2+L1/2)\frac{\partial F}{\partial L} = A \cdot 2(K^{1/2} + L^{1/2}) \cdot \frac{\partial}{\partial L}(K^{1/2} + L^{1/2})

  3. Differentiate K1/2+L1/2K^{1/2} + L^{1/2} with respect to LL, noting that K1/2K^{1/2} is a constant: L(K1/2+L1/2)=12L1/2\frac{\partial}{\partial L}(K^{1/2} + L^{1/2}) = \frac{1}{2L^{1/2}}

  4. So, the Marginal Product of Labor (MPL) is: MPL=A2(K1/2+L1/2)12L1/2=AK1/2+L1/2L1/2\text{MPL} = A \cdot 2(K^{1/2} + L^{1/2}) \cdot \frac{1}{2L^{1/2}} = A \frac{K^{1/2} + L^{1/2}}{L^{1/2}}

    Simplifying: MPL=A(K1/2L1/2+1)\text{MPL} = A \left( \frac{K^{1/2}}{L^{1/2}} + 1 \right)

Marginal Product of Capital (MPK)

The MPK is the partial derivative of the production function with respect to KK.

  1. Differentiate F(A,K,L)F(A, K, L) with respect to KK: FK=A2(K1/2+L1/2)K(K1/2+L1/2)\frac{\partial F}{\partial K} = A \cdot 2(K^{1/2} + L^{1/2}) \cdot \frac{\partial}{\partial K}(K^{1/2} + L^{1/2})

  2. Differentiate K1/2+L1/2K^{1/2} + L^{1/2} with respect to KK, noting that L1/2L^{1/2} is a constant: K(K1/2+L1/2)=12K1/2\frac{\partial}{\partial K}(K^{1/2} + L^{1/2}) = \frac{1}{2K^{1/2}}

  3. So, the Marginal Product of Capital (MPK) is: MPK=A2(K1/2+L1/2)12K1/2=AK1/2+L1/2K1/2\text{MPK} = A \cdot 2(K^{1/2} + L^{1/2}) \cdot \frac{1}{2K^{1/2}} = A \frac{K^{1/2} + L^{1/2}}{K^{1/2}}

    Simplifying: MPK=A(1+L1/2K1/2)\text{MPK} = A \left( 1 + \frac{L^{1/2}}{K^{1/2}} \right)

Final Results:

  • MPL: A(K1/2L1/2+1)A \left( \frac{K^{1/2}}{L^{1/2}} + 1 \right)
  • MPK: A(1+L1/2K1/2)A \left( 1 + \frac{L^{1/2}}{K^{1/2}} \right)

Would you like further details or clarifications?

Here are 5 related questions you may find interesting:

  1. How would you interpret the significance of MPL and MPK in this model?
  2. How do changes in AA (productivity) affect MPL and MPK?
  3. What happens to MPL and MPK as LL or KK increases significantly?
  4. How does the Cobb-Douglas production function compare to this form?
  5. Can you calculate MPL and MPK for specific values of AA, KK, and LL?

Tip: When analyzing marginal products, pay close attention to diminishing returns as inputs increase independently.

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Math Problem Analysis

Mathematical Concepts

Differential Calculus
Marginal Products
Partial Derivatives

Formulas

F(A, K, L) = A(K^(1/2) + L^(1/2))^2
MPL = A (K^(1/2) + L^(1/2)) / L^(1/2)
MPK = A (K^(1/2) + L^(1/2)) / K^(1/2)

Theorems

Chain Rule for Partial Derivatives

Suitable Grade Level

Undergraduate Economics or Mathematics