Posted by **yessi** on Sunday, March 11, 2012 at 1:20pm.

the productivity of a country in western Europe is given by the function f(x,y)=40x^4/5 y^1/5 when x units of labor and y units of capital are used.

a)What is the marginal productivity of labor and the marginal productivity of capital when the amounts expended on labor and capital are 32 units and 243 units, respectively?

b) Should the government encourage capital investment rather than increased expenditure on labor at this time in order to increase the country’s productivity?

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