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The production function for the personal computers of DISK, Inc., is given by q = 10K0.5 L05 where q is the number of computers produced
The production function for the personal computers of DISK, Inc., is given by q = 10K0.5 L05 where q is the number of computers produced per day, K is hours of machine time, and L is hours of labor input. DISK's competitor, FLOPPY, Inc., is using the production function q = 10K'6 L0'4. If both companies use the same amounts of capital and labor and K FLOPPY FLOPPY > DISK Assume that capital is limited to 9 machine hours, but labor is unlimited in supply. In which company is the marginal product of labor greater? Explain. O A. DISK has the greater marginal product of labor when labor is greater than 1. O B. DISK has the greater marginal product of labor. 0 C. FLOPPY has the greater marginal product of labor. 0 D. FLOPPY has the greater marginal product of labor when labor is greater than 1
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