Problem
Assume that the production function is given by Y = A K^.4 L^.6 where Y = National Income = GDP, K = 100, L = 400, and A = 10.
a. Calculate National Income (Y)? Derive the equation for the marginal product of labor (MPL) What happens to the MPL as K increases?
b. Derive the equation for the marginal product of capital (MPK) What happens to the MPK as K increases?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.