Question
1.Consider the following short-run production function (where L = variable input, Q = output): Q = 6L - 0.5L 2 a.Find the value of L
1.Consider the following short-run production function (where L = variable input, Q = output):
Q = 6L - 0.5L2
a.Find the value of L at which diminishing marginal returns sets in. Hint: Diminishing Returns sets in where MPL = 0. After that point, adding one additional worker will be less productive than the previous addition.
b.Determine the average product of labor function (APL).
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Economics of Money Banking and Financial Markets
Authors: Frederic S. Mishkin
12th edition
134733821, 134733827, 9780134734507 , 978-0134733821
