Posted by becky on .
A factory's output is Q=600K^1/2L^1/3 units, (read 600 x K to the 1/2 power x L to the 1/3 power). K denotes capital investment and L denotes the size of the labor force. Estimate the percentage increase in output that will result in a 2% increase in the size of the labor force if capital investment is not changed.
Q = 600K^1/2L^1/3
Q' = 300K^-1/2L-2/3 (read 300 x K to the negative 1/2 power x L to the negative 2/3 power.)
Percentage Change equation
I'm not sure if this is correct so far and where do I go from here?
Your derivative should be with respect to labor force L.
Q = 600(K^1/2)*(L^1/3)
And from there..
= 1/3 (dL/L) where you are given
comments? check it all, it is hard to type an error when in ASCII