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3. You manage a manufacturing plant that makes gadgets using labor and capital. The production technology is summarized by the production function: Q =8KL The
3. You manage a manufacturing plant that makes gadgets using labor and capital. The production technology is summarized by the production function: Q =8KL The assembly machines, K, are each rented for $200 per week, and the wage rate is $800 per week. Currently your plant has a fixed installation of 60 assembly machines, and produces 12,800 units per week. Use this information to find the following: a. Number of workers L = b. The short run cost of production TC = $ c. The average cost is $ A new production facility is being designed that will be able to produce 12,800 gadgets at lowest possible cost. and the marginal product of capital d. The marginal product of labor is MPL = is MPK = e. Number of workers L = f. Number of machines K=- g. The long run cost of production TC = $ h. The long run average cost is $
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