Exercise 1 | Wiskunde op Tilburg University

Consider the production function

$P(L,K)=2L+3K$ . Determine the elasticity with respect to capital at

$(L,K)=(5,10)$ .

Antwoord 1 correct

Correct

Antwoord 2 optie

$3$

Antwoord 2 correct

Fout

Antwoord 3 optie

$\dfrac{1}{4}$

Antwoord 3 correct

Fout

Antwoord 4 optie

$40$

Antwoord 4 correct

Fout

Antwoord 1 optie

$\dfrac{3}{4}$

Antwoord 1 feedback

Correct:

$\epsilon_K=P'_K(L,K)\cdot \dfrac{K}{P(L,K)}=3\cdot \dfrac{K}{2L+3K}$ . Therefore, at

$(L,K)=(5,10)$ it holds that

$\epsilon_K=\dfrac{3\cdot 10}{2\cdot 5+3\cdot 10}=\dfrac{3}{4}$ .

Go on.

Antwoord 2 feedback

Wrong:

$\epsilon_K\neq P'_K(L,K)$ .

See Partial elasticity.

Antwoord 3 feedback

Wrong: That is the partial elasticity with respect to labor, not to capital.

Try again.

Antwoord 4 feedback

Wrong:

$\epsilon_K \neq P(L,K)$ .

See Partial elasticity.