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- Aug 19th 2007, 06:47 AMneedhelpsobadproduction function
Need answers! Urgent

- Aug 19th 2007, 01:21 PMTKHunny
You lost patience? Sorry. I did think about it. What have you been doing?

If we fix the production, Q, or the ratio Q/A, we see that K can be expressed as a function of L.

Rewrite the expression as $\displaystyle \left(\frac{Q}{A}\right)^{\alpha} = b*K^{\alpha} + (1-b)*L^{\alpha}$

Find the implicit derivative with K = f(L)

$\displaystyle 0 = \alpha b*K^{\alpha - 1}\left(\frac{dK}{dL}\right) + \alpha (1-b)*L^{\alpha - 1}$

Solve for $\displaystyle \frac{dK}{dL}$, which is the marginal change in K associated with a unit change in L.

See, it wasn't so bad. :)