1. Compute the APL (average product of labor). 2. Compute the MPL (marginal product of labor). 3. What is the value of L* at which APL is the highest? 4. For L > L*, which one is bigger, APL or MPL? How about when I < L* and L = L*? 5. Draw APL and MPL on the y-axis as a function

1. Compute the APL (average product of labor). 2. Compute the MPL (marginal product of labor). 3. What is the value of L* at which APL is the highest? 4. For L > L, which one is bigger, APL or MPL? How about when I < L and L = L*? 5. Draw APL and MPL on the y-axis as a function

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Step 2: 1. Average product of Labor

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Step 3: 2. Marginal product of labor

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Step 4: 3. Value of L*, when APL is the highest

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Step 5: 4. L>L*, L<L*, L=L* instances

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Step 6: 5. Intersection of MPL and APL

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