Question
NVidia, the pioneering computer graphics chip maker has a line of production of a semiconductor component of one of its chips. The production process represents
NVidia, the pioneering computer graphics chip maker has a line of production of a semiconductor component of one of its chips. The production process represents number of units produced per day (Q) as a function of labor (L), which costs $400 per unit, and capital (K), which costs $800 per unit. The following production function describes the process:
Q=3L(^2) K
Elasticity of the production function with respect to labor and capital are:
Marginal product of capital and marginal product of labor are:
Average product of labor and average product of capital are:
If labor is currently fixed at L=6, what is the short-run production function
If capital is currently fixed at K=4, what is the short-run production function?
If the goal of the firm is to produce 48,000 units a day, the optimum combination of K and L required at this level of production is:
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