Question
Consider the following short run production function (similar to many we looked at in the videos) where labor is your only input: Q = (-.05)*L
Consider the following short run production function (similar to many we looked at in the videos) where labor is your only input:
Q = (-.05)*L3+ (4)*L2
What is the quantity of labor where Average Product (AP) is maximized?
Multiple Choice
- AP is maximized where L = 70
- AP is maximized where L = 60
- AP is maximized where L = 50
- AP is maximized where L = 40
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Foundations of Business
Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor
6th edition
1337386928, 9781337670975 , 978-1337386920
