A person's productivity at a particular job may change with experience. Consider the following model of e ffective labor input, L, L = 10(1 - e^(-0.1t)) + 2 where L is a measure of the "effective labor input" of a particular worker and t is the worker's tenure (that is years spent in a particular job). Use differentiation to determine the marginal change in the effective labor input with respect to time on the job, t. Provide a brief economic interpretation of the differences in these values of dL/dt.
Explanation / Answer
L = 10(1 - e^(-0.1t)) + 2 dL/dT = 10( -0.1*e^(-0.1t)) = -e^(-0.1t) dL/dT is