Production managers for the Pottsville Hard Hat Corporation estimate their production function to be TP = 48L + 9L2 - L3 where TP is measured in hats and labour (L) is the variable input. (a) What is the equation for APL? TP (b)What is the equation for MPL? (c ) What is the maximum output that can be produced? L AP, MP (d) At what level of input, does diminishing AP take place ? | L, (e) What would you be willing to pay 5 units of labour in hats? In dollars, if hats sold for $20? (f) If the wage rate were 24 hats, how many labour would you hire? ANSWERS: Question a MPL = (b) APL = (2 marks) Question c TP= ( 2 mark) Question d L= (1 marks) Question e hats $ ( 3 marks) Question f L= ( 2 marks)