HomeworkLib
Question


6. Consider the following production function: Q=L? -.5L (a) At what level of L is average product at its maximum? (b) Show t
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Q = 2²-0523 AP= Q = -0.52² d (AP) = 1 -2 = 0 du L= 2 = 1 mp= do - 22 - 1.52² dL - At L=1 , MP=2(1) - 1.5(1) = 0.5 At L-1, AP=

0 0
Add a comment
Know the answer?
Add Answer to:
6. Consider the following production function: Q=L? -.5L (a) At what level of L is average...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • please show work for number 6 mea. 4+ 12 + -4(10)12620)+ 22 what we w ere...

    please show work for number 6 mea. 4+ 12 + -4(10)12620)+ 22 what we w ere product at its maximum (b) Show that marginal product is equal to average product at the max- imum average product you determined in (a).

  • a. A firm has the production function q = ln L+12L^2- 10L^3. Find the average product...

    a. A firm has the production function q = ln L+12L^2- 10L^3. Find the average product of labor, the marginal product of labor. b. Consider the following short-run production function: q = 6L^22 – 1/3L^3. At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

  • The production function of the Auto parts firm is given by Q-5L-L, where Q is the...

    The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...

  • 1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced pe...

    1. Suppose that the production function for lava lamps is given by Q = KL -ľ, where is the number of lamps produced per year, K is the machine-hours of capital, and L is the man-hours of labor. Suppose K = 600. a. Draw a graph of the production function over the range L = 0 to L = 500, putting L on the horizontal axis and on the vertical axis. Over what range of L does the production function...

  • Q = 120 L +6L -0.4L 1. What is the maximum level of production (Q) in...

    Q = 120 L +6L -0.4L 1. What is the maximum level of production (Q) in units that this firm can attain per week? 2. At what level of labor utilization (L) is the Average Productivity of Labor maximized? PLEASE DO NOT ROUND-OFF YOUR LEVEL OF L. What is the APL or average production, in units, when APL reaches its maximum? 3. Beyond what level of labor utilization (L) does the Law of Diminishing Marginal Returns (or Productivity) begin to...

  • 18. value: 7.00 points Suppose that a firm with the production function Q = min(5K, 5L)...

    18. value: 7.00 points Suppose that a firm with the production function Q = min(5K, 5L) is currently using 6 units of capital and 5 units of labour. What are the marginal products of K and L in this case? K=

  • Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L...

    Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative numbers tell in terms of the amount of labor...

  • Consider the production function Q = 6L^2 - L^3.

    4. Consider the production function Q = 6L^2 - L^3.a. Find average product. Find the number of labor (L) that the firm should hire to maximize average product.b. Find marginal product. Find the number of labor (L) that the firm should hire to maximize marginal product.c. Find the number of labor (L) that the firm should hire to maximize total product of labor.d. Find the number of labor (L) that the firm has zero average product.

  • 1. Consider a firm that has the following CES production function: Q = f(L,K) = [aLP...

    1. Consider a firm that has the following CES production function: Q = f(L,K) = [aLP + bK°]!/p where p a. Derive the MRTS for this production function. Does this production function exhibit a diminishing MRTS? Justify using derivatives and in words. What does this imply about the shape of the corresponding isoquants? (10 points) b. What are the returns to scale for this production function? Show and explain. Explain what will happen to cost if the firm doubles its...

  • Consider a firm that faces the following production function: q = f(L, K) = L1/2 K1/2...

    Consider a firm that faces the following production function: q = f(L, K) = L1/2 K1/2 where q is output, L is labor, and K is capital. Use this production function to answer the following questions. (a) What is the marginal product of labor (MPL)? (b) Does the MPL follow the law of diminishing returns? How do you know? (c) What is the marginal product of capital (MPK)? (d) Does the MPK follow the law of diminishing returns? How do...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT