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2. Begin by reviewing the underlying production function provided: Y = A.K^(0.3)L^(0.7). This will help you understand the relationships between the variables involved.
3. Proceed to derive the equation for the marginal product of capital (MPK) using the formula MPK = dY/dK = 0.3AK^(-0.7)L^(0.7). Ensure to replace variables as needed when calculating.
4. Next, find the marginal product of labor (MPL) by applying the formula MPL = dY/dL = 0.7AK^(0.3)L^(-0.3). Again, substitute the necessary values to calculate.
5. With values A = 3, K = 10, and L = 20, compute MPK and MPL. Compare the results to determine which marginal product is larger, and explain why based on the coefficients.
6. Now, increase K by one unit to 11. Recalculate MPK to observe the impact of this change on output.
7. Return K to 10 and increase L by one unit to 21. Calculate MPL and compare the changes in MPK and MPL to understand the effect of variations in labor versus capital.
8. Finally, change A from 3 to 4 and analyze how this adjustment affects output Y. Document the percentage increase and explain why it is significant in relation to MPK and MPL.
9. Once you have completed all calculations and steps, ensure to save your changes. You may download the document, print it, or share it as required.

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