Compute the average product of labor apl

Assignment Help Business Economics
Reference no: EM1354052

A firm can manufacture a product according to the production function Q = F(K,L) = K3/4L1/4

a) Compute the average product of labor, APL, when the level of capital is fixed at 16 units and the firm uses 16 units of labor. How does the average product of labor change when the firm uses 81 units of labor?

b) Find an expression for the marginal product of labor, MPL, when the amount of capital is fixed at 16 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 16 units. If the firm can sell its output at a price of $100 per unit and can hire labor at $25 per unit, how many units of labor should the firm hire in order to maximize profits?

d) Now assume capital varies. If the firm has $10,000 and Labor costs $25 a unit and capital costs $50 a unit what is the greatest level out output the firm can produce?

Reference no: EM1354052

Questions Cloud

Pay fairness and structure : List and describe the perceptions employees use to determine the fairness of the company's procedures and outcomes
Audit committee-compensation committee : Which is more important to effective corporate governance: an audit committee or a compensation committee? Why? Explain your answer.
Determination of companies dso : Firm x has sales of 10 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable is two million. Determine the company's DSO,
Find the moment of inertia of the pulley : The index of refraction for violet light in silica flint glassis 1.66, and that for red light is 1.62. What is the angulardispersion of visible light passing by an equilateral prism ofapex angle 60.0° if the angle of incidence is 50°.
Compute the average product of labor apl : Compute the average product of labor, APL, when the level of capital is fixed at 16 units and the firm uses 16 units of labor. How does the average product of labor change when the firm uses 81 units of labor.
Percent of accounts receivable method : At each calendar year-end mazie supply co. uses the percent of account receivable method to estimate bad debits. On December31,2013 it has outstanding accounts receivable of 55000 and estimated that 2% will be uncollectible.
Organizational structure to decentralize decision-making : The CEO's main objectives in the reorganization are to decentralize decision making to physicians and other clinicians, to pave the way for more effective information systems for monitoring quality and cost.
Research trends in the field of cross cultural psychology : What are some research trends in the field of cross cultural psychology?
Determine company projected net income : Corporation x recently reported the following 2008 income statement in millions of dollars, this year the company is forecasting a 25 percent increase in sales.

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!

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