The manager of a national retailing outlet recently hired an economist to estimate the firm's production...

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The manager of a national retailing outlet recently hired an economist to estimate the firm's production...

The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given

Q = K^.5 L^.5

and that capital is fixed at 1 unit.

a. Calculate the average product of labor when 5 units of labor are utilized.

b. Calculate the marginal product of labor when 25 units of labor are utilized.

c. Suppose the firm can hire labor at a wage of $50 per hour and output can be sold at a price of $100 per unit. Determine the profit-maximizing levels of labor and output.

Please show work. Thanks!

business economics

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