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Suppose the production function is Q = 20(K^0.5 L^0.5) and the value of capital is 100.
A) Calculate the total product for the following values of labour input: 1, 5, 10, 20, 40, 50, 80, 100, 150, 200.
B) Calculate the average product at each of these levels of output.
C) How does marginal product vary over this range of output?
Fiat has introduced a new car in the United States called the 500. Assume that your boss has the responsibility to forecast the sales of the 500 in the United States for the year 2012. He believes that Fiat will sell 85,000 of the 500s for 2012. Supp..
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