CONCEPTUAL AND COMPUTATIONAL QUESTIONS1. A firm's analysts estimate that the firm can manufacture a product according to the pro-duction function (LO1, LO2, LO5, L06)m" pro-union'sng run,an in-ovideswon incostlystly ar-ementng-runQ = F(K, L) = K³41/4a. Calculate the average product of labor, APL, when the level of capital is fixed at81 units and the firm uses 16 units of labor. How does the average product of laborchange when the firm uses 256 units of labor?b. Find an expression for the marginal product of labor. MP, when the amount ofcapital is fixed at 81 units. Then, illustrate that the marginal product of labor dependson the amount of labor hired by calculating the marginal product of labor for 16 and81 units of labor.c. Suppose capital is fixed at 81 units. If the firm can sell its output at a price of $200per unit of output and can hire labor at $50 per unit of labor, how many units of laborshould the firm hire in order to maximize profits?McGrawHillC

We have the following production function: Q = K3/4L1/4 Where Q is quantity produced K is capital L…

Calculate the average product of labor, APL, when the level of capital is fixed a 81 units and the firm uses 16 units of labor. How does the average product of 1- change when the firm uses 256 units of labor? Find an expression for the marginal product of labor, MP, when the amount o fived at 81 units. Then, illustrate th inal product of labor d 1:

Calculate the average product of labor, APL, when the level of capital is fixed a 81 units and the firm uses 16 units of labor. How does the average product of 1- change when the firm uses 256 units of labor? Find an expression for the marginal product of labor, MP, when the amount o fived at 81 units. Then, illustrate th inal product of labor d 1:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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