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Snappy Dresser is a firm that produces dress shirts. Suppose the firm's production function is given by q=4L42S41, where L denotes labor and S denotes
Snappy Dresser is a firm that produces dress shirts. Suppose the firm's production function is given by q=4L42S41, where L denotes labor and S denotes sewing machines. The price of labor is given by the wage, w, and price of sewing machines is denoted ps. Suppose that in the short run number of sewing machines is fixed at S=16 while L is variable. a. Write down the expression for the short-run production function. In no more than two sentences, describe the fundamental difference between the short-run and long-run time horizons in production. b. Compute the marginal product of labor (MPL) and the average product of labor (APL). Is the MPL increasing or decreasing as labor increases? Is MPL,
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