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a. [10 marks] Suppose that firm AKEA produces chairs. For its first year of production, it has bought 5 electric planers, but it plans to
a. [10 marks] Suppose that firm AKEA produces chairs. For its first year of production, it has bought 5 electric planers, but it plans to hire one worker every week. After the first 7 weeks. it evaluates its production technology, which is represented in Table 1. Explain AREA how to define the marginal product of labour, reported in Column 4. Also, explain them what the marginal product of the 5th worker is. Table I: Technology for chairs" production Toul numbers Toul number Toul Marginal product of workers of planers output of labour 5 15 74 b. [10 marks] Does the AKEA's production of chairs exhibits an increasing. decreasing or constant marginal product of labour? c. [15 marks] Consider a different firm McDuck that produces beef hamburgers using Scottish and English meat. Calling Q the quantity of hamburgers produced per day. K, the kilograms of the Scottish meat used, and A's the kilograms of English meat used, assume that McDuck's production function is as follows: Q = 10K, + 10K, Illustrate in a graph the combinations of Scottish and English meat that result into 60 ham- burgers per day. d. [15 marks] Define the marginal rate of technical substitution (MRTS) between two inputs. and calculate the METS along McDuck's isoquants
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