Show that the law of diminishing marginal productivity


Question: 1. Find ∂y/∂x and ∂y/∂z when

(a) y = 6 + 3x + 16z + 4x2 +2z2

(b) y = 14x3z2

(c) y = 9 + 4xz - 3x-2z3

2. Show that the law of diminishing marginal productivity holds for the production function Q = 12K0.4L0.4. Will the MPL schedule take the shape shown in Figure?

1210_Mpl.png

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Business Economics: Show that the law of diminishing marginal productivity
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