✏ Calculating Marginal Products

K	L	q
10	10	10
10	12	11

✏ What is the MPL?

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$MPL = \frac{\Delta Q}{\Delta L}$ (when other inputs are held fixed)
$MPL = \frac{(11-10)}{(12-10)} = 0.5 \quad\text{✅}$

K	L	Energy	q
10	10	10	10
12	10	10	14

✏ Can we calculate MPK? If so, what is it?

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$$MPK = \frac{\Delta Q}{\Delta K}$$

$MPL = \frac{(14-10)}{(12-10)} = 2 \quad\text{✅}$

K	L	Energy	q
10	10	10	10
14	10	12	16

✏ Can we calculate MPK? If so, what is it?

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Marginal product is what happens to output when one input is changed… . . By itself Holding all other inputs constant.
We didn’t hold energy constant here, so we can’t calculate the MPK. It was only Labor that we held constant.  ✅

K	L	Energy	q
10	10	10	10
16	12	10	16

✏ Can we calculate MPK? If so, what is it?

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Marginal product is what happens to output when one input is changed… . . By itself Holding all other inputs constant.
We didn’t hold labor constant here, so we can’t calculate the MPK. It was only energy that we held constant.  ✅

K	L	Energy	q
10	10	10	10
16	10	10	16

✏ Can we calculate MPK? If so, what is it?

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$MPK = \frac{(16-10)}{(16-10)} = 1 \quad\text{✅}$

K	L	q
10	10	10
11	12	11

✏️ Is this?

a. IRTS
b. DRTS
c. CRTS
d. We can’t determine this with the given information.

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Answer: d  ✅

✏️ Is the Marginal Product of Labor

a. Positive
b. negative
c. zero
d. We can’t determine this with the given information.

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Answer: d  ✅