User Account

All Pages

Calculating the marginal product of labor

Assignment Help Business Economics
Reference no: EM132162835

1. A firm can manufacture a product according to the production function:

Q=F(K, L) = K3/4L1/4

a. Calculate the average product of labor AP L , when the level of capital is fixed at 81 units and the firm uses 16 units of labor. How does the average product of labor change when the firm uses 256 units of labor?

b. Find an expression for the marginal product of labor, MPL , when the amount of capital is fixed at 81 units. Then, illustrate that the marginal product of labor depends on the amount of labor hired by calculating the marginal product of labor for 16 and 81 units of labor.

c. Suppose capital is fixed at 81 units. If the firm can sell its output at a price of $200 per unit of output and can hire labor of $50 per unit of labor, how many units of labor should the firm hire in order to maximize profits?

Reference no: EM132162835

Questions Cloud

What should the firm do regarding their pricing : Based off this information what should the firm do regarding their pricing?
Can alabama sports marketing seek specific performance : In this situation, can Alabama Sports Marketing seek specific performance of the contract? If yes, why? If no, why not?
What is an unhealthy agreement : Why is it important to set short- and long-term goals when planning a meeting regarding conflicts? Provide examples.
Negotiate a new commercial policy : The Uk now needs to negotiate a new commercial policy with the other 27 members of the EU.
Calculating the marginal product of labor : 1. A firm can manufacture a product according to the production function:
The investigation project about project management : A purpose of the report is to show the instructor what you have learned from the investigation project about project management.
What does it mean for the companies to aggregate payments : What does it mean for the companies to aggregate payments made to each other company? What payments should be made if they use multilateral netting
What type of pay structure is used at both organizations : What are some of the legal requirements and economic influences facing each organization that may or may not influence the pay structure?
What steps could one take to minimize the amount : What steps could one take to minimize the amount of federal income taxes imposed upon each type of business enterprise?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd