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Ed's building company has the following production function = 20L-L. q= where q is the number of houses built and L is the quantity
Ed's building company has the following production function = 20L-L. q= where q is the number of houses built and L is the quantity of labor Ed employs. a. Derive the MP and AP. b. For what values of L is the MP>0? For what values of L is the MP diminishing? c. Draw the MP and AP on a graph.
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a b c q MP dq dL AP 20LL Thus MP 0 2022 0 So for 2 10 MP 0 ...
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
