Final answer:
The amount of steel produced for each unit of labor can be calculated using the given production function. The impact of labor and capital on steel production can be calculated from the exponents in the production function. The percentage increase in steel production due to labor and capital can be calculated by finding the individual contributions of labor and capital and summing them up.
Step-by-step explanation:
The amount of steel produced for each unit of labor, or the impact of labor on steel production, can be determined from the given production function. In the equation, the exponent of L (0.4) represents the relationship between labor and steel production. For each unit increase in labor, the steel production will increase by a factor of 10 raised to the power of 0.4, which is approximately equal to 2.51.
The impact of capital on steel production can also be determined from the production function. The exponent of C (0.6) represents the relationship between capital and steel production. For each unit increase in capital, the steel production will increase by a factor of 10 raised to the power of 0.6, which is approximately equal to 3.98.
To calculate the percentage increase in steel production due to labor and capital, we need to calculate the individual contributions of labor and capital and then sum them up. The individual contributions can be calculated using the formula: (new value / original value) * 100 - 100. For example, if the original value of steel production is S0 and the new value after an increase in labor is S1, the percentage increase due to labor is [(S1 / S0) * 100] - 100. Similarly, the percentage increase due to capital can be calculated using the same formula.