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Consider the production function of firm A, is given by Y = 10KL%, where Y is the number of goods produced per day, K is
Consider the production function of firm A, is given by Y = 10KL%, where Y is the number of goods produced per day, K is the hours of machine time, and L is hours of labor input. Assume that capital is limited to 10 machine hours per day, and labor is unlimited in supply. a) Please calculate the total output based on the quantities of labor (fill in the gaps in the table below). Quantity of labor Total Output Marginal Product of Labor Input b) Calculate the marginal product of labor input (fill in the gaps in the table from a)) Does the production function exhibit diminishing marginal returns to labor? Explain. c) Draw the production function graph. Hint: put Y on the y-axis, labor input on the x-axis, find the points from the above table and link them
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