1a) Consider the production function Q = 0 + 6L + 5L2 - .2L3. The range of labor covering Stage II of production is ____ to ____. You can use Excel spreadsheet or otherwise to answer this question.b) A firm’s production function is Q = 600*L -1.0*L2. The firm is currently employing 83 units of labor. What is the elasticity of production? You can use a excel spreadsheet or otherwise to answer this questionc) A firm’s LRTC = 600Q - .5Q2 + .001Q3. At what level of output does the firm experience minimum efficient scale? Use either Excel Spreadsheet, Excel Solver or Otherwise

“Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.”Answer Q = Q = 0 + 6L + 5L2 - .2L3MPL = ∂Q∂L = 6+10L -.6L2∂MPL∂L= 10 - 1.2L In Second stage , MP is the, but decreasingSo, ∂MPL∂L<0when 10 - 1.2L<0 ,10< 1.2LL>101.2 The second stage starts, at a point where MP= AP, or when AP is max.Now AP = Q/L = 6+ 5L -.2L2thus ∂AP∂L= 5 - 4L = 0 L = 5/.4 = 12.5 = 13MP >0 ,When 1 <17thus and stage range LE ( 13 , 14 )

Answered: 1a) Consider the production function Q…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1a) Consider the production function Q = 0 + 6L + 5L² - .2L³. The range of labor covering Stage II of production is ____ to ____. You can use Excel spreadsheet or otherwise to answer this question.

b) A firm’s production function is Q = 600*L -1.0*L². The firm is currently employing 83 units of labor. What is the elasticity of production? You can use a excel spreadsheet or otherwise to answer this question
c) A firm’s LRTC = 600Q - .5Q² + .001Q³. At what level of output does the firm experience minimum efficient scale? Use either Excel Spreadsheet, Excel Solver or Otherwise

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