Question
1.The production process in a factory can be represented by the following production function: Y=10L^0.6 Find the marginal product of labor (MPL). Find the average
1.The production process in a factory can be represented by the following production function: Y=10L^0.6 Find the marginal product of labor (MPL). Find the average product of labor (APL). Is there a decrease or increase in the marginal product of labor? Explain that. Explain the relationship between marginal product of labor (MPL) and average product of labor (APL).
2. Suppose the production function of a factory is:
Q=100K^0.5 L^0.4
Find the marginal product of labor (MPL)
Find the marginal product of capital (MPK)
Is there decreasing rate (MRTS)? Explain that.
Is there an increase, decrease, or stability in volume returns? Explain that.
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
