Answer to Question #68099 in Microeconomics for aretin bella
Q = 50 L.8K.2
Where: Q = number of plastic holders produced per day
L = units of labor input per day
K = units of capital input per day.
Let K = 1000 and L = 100
Calculate the average product of labor and the marginal product of labor.
2.A firm has a production function:
Where : Q = number of metal stampings produced per day
L = unit of labor input per day
K = unit of capital input per day
Labor is a variable input, whereas capital is a fixed input. The selling price of Q is RM9.00 per unit; The purchase price of capital is RM 100 per unit; and the purchase price of labor is RM20 per unit.
If K is fixed at 100 units, determine the number of units of labor to purchase each day in order for the firm to maximize profit.
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