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
BU 5210 Final Summer 2013 Economic Analysis

Imagine an amusement park with a sole attraction: a roller coaster. For simplicity, the cost of providing a ride is zero. There is a single consumer with demand for rides on the ro

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2.

CONTRACTING AND INSIDER-OUTSIDER MODELS OF UNEMPLOYMENT   From  the  Walrasian  assumption  of  a market-clearing wage  on  efficiency considerations  -  it was  postulated  th

A study of 86 savings and loan associations in six northwestern states yielded the following cost function. I''ve been given the following data; C=2.38- .006153Q1 + .000005359Q2 +

Meaning of Fiscal Policy In this general theory, Keynes used fiscal policy when referring to the influence of taxation on saving and government investment spending financed thr

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

free trade promotes a mutually profitable regional division of labour greatly enhances the potential real national product ofall nations and makes possible higher standards of livi

Q. What is Production Isoquant? An isoquant demonstrates all those combinations of factors that produce the same level of output. An isoquant is also called as equal product cu

Why do the managers in marris model maximise their satisfaction by choosing a higher growth rate and a lower valuation ratio when compared to the profit maximisation