Question
Nobody fixes more fender benders than Crazy Bob! At his auto body shop, the production function showing the number of cars repaired each year isQ=100KL,
Nobody fixes more fender benders than Crazy Bob! At his auto body shop, the production function showing the number of cars repaired each year isQ=100KL, whereKis the number of arc welding machines available, andLis the number of employees. Currently,Kis fixed at 9.
a.Given the above specifications, identify an equation for Crazy Bob's short-run production function that shows output as a function of labor only.
Bob's production function is
Q=300L
Q=900L
Q=100L
Q=3009L
b.Calculate the total number of cars Bob can repair each year, the marginal product of labor, and the average product of labor forL= 1, 2, 3, and 4.
c.TheMPLis____________ It is__________theAPLat each level of employment; thus, the average must be __________.
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