Calculate the marginal product of labor, Managerial Economics

The production function of a small shop that frames pictures is

Q = 5 √LK

where Q is the number of pictures framed per day, L is labor hours and K is the machine hours.

Suppose 9 labor hours and 9 machine hours, are used every day, what is the maximum number of pictures that can be framed in a day? Calculate the marginal product of labor when 9 labor hours are used each day together with 9 machine hours. Suppose the firm doubles both the amount of labor and machine hours used per day, calculate the increase in output. Comment on the returns to scale in the operation.

 

Posted Date: 4/1/2013 6:12:20 AM | Location : United States







Related Discussions:- Calculate the marginal product of labor, Assignment Help, Ask Question on Calculate the marginal product of labor, Get Answer, Expert's Help, Calculate the marginal product of labor Discussions

Write discussion on Calculate the marginal product of labor
Your posts are moderated
Related Questions
What is the demand function It should be noted that by demand function, economists mean entire functional relationship which is the whole range of price-quantity relationship a

Importance of Income Elasticity If a country is experiencing economic growth, the income of the people will increase.  However, for those engaged in the production of goods wi

when firm can achieve optimization

Explain the theory of production, Managerial Economics Explain the Theory of Production

PROGRESSIVE TAX A progressive income tax system is one where the higher the income, the greater the proportion paid in taxes.  This is effected by dividing the taxpayers' inco

(i) Do the laws of economics still work today? (use the case discussed in class to answer this question or any other examples) (ii) Provide examples of three factors that can sh

Q. Explain the Short run production function? Discussion of production up to now has ignored the time required to build production facilities. There is a requirement to take in

Factors affecting the total market demand These are broadly divided into the determinants of demand and conditions of demand. (a)      Own price of the product This

The Multiplier In his theory Keynes asserted that consumption is a function of income, and so it follows that a change in investment, which we may call ΔI, meaning an incremen

I. A farmer – businessman is in a quandary as to what crop to plant in his land. He has the option to plant Crop A, Crop B, or Crop C. f the weather turns out to be good and the