The Classical Model and Unemployment: Assume a perfectly competitive economy that produces on a daily basis as defined by this Cobb-Douglas production function: =81/43/4. a) (3pts) Using calculus, derive the formula for the Marginal Product of Labor(MPL) for one day’s work.b) (3pts) Suppose the capital stock (K) is 160,000 and the price (value) of theoutput is $5 per unit. If the equilibrium wage rate is $60 per day, how manyworkers (L) are there in this economy?b) (3pts) Make the same assumptions as before but now suppose that theminimum wage is set at $75/day, how many workers will be hired by employers?

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