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Assuming that the representative firm in an economy has the following production function: The derivatives of the production function with respect to K and N are given as follow: Suppose the firm
Assuming that the representative firm in an economy has the following production function:
The derivatives of the production function with respect to K and N are given as follow:
Suppose the firm is currently renting K = 10000 and employing N = 6400. If the firm were to increase the amount of capital by 1 unit, how much additional output should the firm expect? Round your answer to at least 2 decimal places.