Assume that a manufacturer has productivity function P(l, c) where l and c are the amounts of labor and capital utilized. Which of the following indicates that a slight increase in the amount of labor utilized will result in an increase in productivity of 3 units.
A) $\frac { \partial \mathrm { P } } { \partial \mathrm { l } }$ (100, 75) = 3
B) P(10, 75) = 3
C) P(1, 75) = 3
D) $\frac { \partial P } { \partial c }$ (100, 75) = 3
E) none of these

Question

Quizplus · Accepted Answer

The correct answer is A because $\frac { \partial \mathrm { P } } { \partial \mathrm { l } }$ (100, 75) = 3 indicates the partial derivative of the productivity function P with respect to labor (l) at the point (100, 75) is 3. This means a slight increase in labor at this point increases productivity by 3 units.

Assume That a Manufacturer Has Productivity Function P(l, C) Where ∂P∂l\frac { \partial \mathrm { P } } { \partial \mathrm { l } }∂l∂P​

Assume That a Manufacturer Has Productivity Function P(l, C) Where $\frac { \partial \mathrm { P } } { \partial \mathrm { l } }$